Purchase price: $55,000 Cash invested: $110,000 Sale price: $205,000 This was a 1950 raised home that needed extensive foundation repairs as well as all plumbing, electrical and subflooring.

I have a friend who has one in Florida where he doesn't have to do any repairs or maintenance to his unit.

Skipping ahead many months, I'm happy to report that half of the equity wiped out by the lien was recovered which made a big difference for these folks who were looking to retire.We purchased the house when my wife was 8 months pregnant.

Not only can you deduct mortgage interest and property taxes, but you can also claim deductions for property repairs, depreciation, and other expenses related to maintaining the rental units.Learning While EarningHouse hacking gives you hands-on experience as a landlord while you continue to live in the property.

It's not the same thing.If you have $130,000 in equity, I would not use any more than $65,000 on a new property and $15,000 of that should be held for reserves so you would have $50,000 for downpayment and closing costs really.Unless your rental property is new construction, you don't want to max out the equity in case of large repairs coming.

However, if the issue is an easy fix, I’d still go ahead and help resolve it!

When you underwrote the deal, you assigned some dollar amount for repairs and capex.

So she’s really into just collecting her check every month which I’m faithfully sent her ahead of time for 12 years.

Make sure you have some money set aside for repairs and turnovers.

@Eric CarlstromMy STRs tend to experience more frequent repairs than my long-term rentals so I tend to budget more for repairs and maintenance.