I do not care what the source of the return is  Historically the highest return is via a value add and appreciation and is more so recently due to the recent rate increase versus earlier this century (before 2022).However, most new RE investors cannot handle extended periods of large negative cash flow.  

You fail to the systems in place, keep strong standards and the failure rate is light.

These rules have increased risks by making it difficult to get rid of poor tenants that pay their rent.

You can always just increase the liability on your current carrier.

Disallowed losses under wash sale rules increase the cost basis of replacement securities, potentially reducing future taxable gains.This post does not create a CPA-Client relationship.

Start with a standard offer, and write a contingency into it for electricity, all the below ground utilities, and then work your way to zoning, permitting etc.

By adhering to our standard procedures, we’re able to maintain consistency and fairness across all tenants, avoiding any perception of favoritism.Thanks again for your feedback!

I can mark it up with a fee or by increasing the rate (or both, but I never do).

A tenant now enjoys these enhancements at $1400/month, showcasing the property’s increased value.

When I run the numbers based on these rents, the property operates at a negative cash flow.If I increase the studio's rent to $1,400 per month, the property becomes cash-flow positive.