As a starting point: -If they work full time and make $700k a year -Don't want to or can't spend time self managing a short-term rental -Don't have a spouse who wants to take the lead on managing the rentals They are likely not going to directly reduce their taxable income with real estate year-to-year. 

Monthly rent = to 2% of the price.

Quote from @Paul Lucenti: We just closed on our 9th deal and first of 2025 - sales price was $115,000 and total monthly cost is $890. 

Q1: Great points, we'll need to have a detailed operating agreement that outlines an agreed approach to all potential outcomes.

Quote from @Edgar Duarte: hi allI would love to get some perspective from your expertise, we have a property that we would have to sell in 2025 to avoid paying taxes on the capital gains, we believe we rcan sell it for $700K and get an equity of almost $500K after paying the mortgage balance, if we invest all of it option in index funds at 7% rate (standard com growth calculator), or in more rental properties as we are all here for, I can get the equity of around $900K.option B would be keep paying the house at 2.3% int rate while we have it in AirBnB and maybe sell it in 10 years for $900K, knowing that we would be paying taxes but it is not that bad still. or we can 1031 at that point?

It seems more your fault for choosing the "lying" contractors from the tenants point of view, if you ask them to pay up, I'm sure they would.

Verifying last 2 years of rental history very important!

Best of luck in 2025!

I manage hundreds of rentals, thousands of renters.

Limited Housing InventoryThe number of homes for sale in Buffalo is significantly below pre-pandemic levels, with a reported 46.1% decrease compared to 2018–2019 averages.