Here’s our OPINION for the Metro Detroit market (always verify each area for yourself!)

Some easily verified facts:- San Diego appreciation has been great - San Diego rent growth has been great- prop 13 protects against exorbitant property tax increases- San Diego has one of the lowest eviction rates in the country- San Diego has one of the lowest delinquent rent rates in the country- San Diego has a very low vacancy rate- historically for long holds, San Diego has produced near top in nation return.  

Here's a PARTIAL list:Office rentComputers, printers & softwareInternet & phone billOffice furnitureOffice supplies: paper, postage, ink, etc.Office liability insuranceAuto expenses: monthly payment, insurance, gas, maintenance, registration/plate feesBroker license fees: annual, monthly board & MLS fees, continuing education fees, E&O insuranceEquipment: lockboxes, signs, etc.Business income tax preparation and paymentsStaff payroll & payroll taxes Time Tasks: answering phones, calling past due tenants, scheduling tours, taking marketing pics, processing those pics, writing ads, researching rent amounts, posting ads, explaining to owners how rent determined & showing where ad posted, opening & processing mail, posting payments, bank deposits, scanning documents & posting to owner & tenant portals, explaining accounting to owners so they understand their monthly statements, taking pics/videos of repairs, finding reputable handymen and contractors, confirming they're properly licensed & insured and tracking annually, verifying repairs done properly, processing invoices for utility bills, repairs, taxes, city inspections, scheduling periodic property evaluations/inspections with tenants that don't want strangers in their homes, explaining to owners why taking so long, and more & more & more...

The three tests outlined above are applied annually, so you may qualify as a real estate professional in one year and not in other tax years.It is also very important to document material participation.To meet the requirements of real estate professional status, it’s essential to keep detailed records of activities and time spent working on the properties so you can verify your real estate professional status in the event the IRS decides to audit your return.For example, you may keep a contemporaneous appointment book, calendar, or narrative summary of the time spent performing real estate activities.

I did go and verify the location and I’m not pleased with it but it will do.

If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.Here’s our OPINION for the Metro Detroit market (always verify each area for yourself!)

About a year later, when I was in a meeting with the Planning Director, he mentioned this rule is unenforceable because any guest can say they are "family", and how do I verify that? 

I would require them to show proof of income to verify they can afford the increase, then make them sign a lease.

Ask what the reference's name is, how the reference knows them, and then ask open-ended questions to verify application details (how much is rent, how many people are living there, how much do they earn, what are their smoking habits, address, work performance, etc.).

Ask a LOT of questions that force people to explain things so that you can understand them or can verify yourself independently.