I am also targeting small multi-family properties starting out.I understand your point on the costs associated with purchasing, renovating, and maintaining properties.

Proper underwriting and due diligence (DD) processes are essential to ensure that projects maintain a strong risk profile while still delivering attractive returns.

The biggest lesson was that with the right partner and plan, even a first-timer can achieve significant success in real estate investing.

However, for the strategy to be effective, clients must ensure that they meet all the IRS requirements, such as maintaining the short-term rental for a sufficiently long period and passing one of the material participation tests (e.g., 100+ hours of active participation).2.

I would make each of these 5% of EGI too but this all depends on how well-maintained the building is.

I feel maintaining your properties correctly and being decent to your tenants is the best preventative measure we as landlords can take next to LLCs, insurance, and umbrella policies.

Other cases- hazard insurance was not renewing or placing high subject to repairs/improvements to maintain or the market cap of my commercial apts was rising as fast as interest rates like in '22. 

My family home was next door so I did all this work while working full time and maintaining a household and family.

A couple of my best investments are single-family homes built in the 40s but they've been maintained over the years and don't have major problems.You say it "almost negative cash flow" but your rent income is only $126,000 and you've spent $150,000 on maintenance.

Specifically around efficiency in devices when not maintained and challenges with realizing potential earnings with device electrification upgrades.