The land represents ~1% of the purchaseOn the contrary - if you purchase a $2 MM shack in manhattan on a postage stamp lot, the land could represent 99%Lever 2 - % of the property with a shorter useful life.Not all parts of a piece of real estate are depreciated at the same speed.Certain personal property assets have SHORTER lifespans in the eyes of the IRS vs the standard 27.5/39 year livesProperties with tons of this often have:- Over-developed land sites (hardscaping, pools, retaining walls)- Fancy Fixtures- Fancy Furniture (STRs!)

The ambition is great to scale fast, but you can treat the smaller deals as practice as you learn to scale. 

Under property management costs, usually just the standard 10% of monthly rent is often referenced but the lease renewal costs & tenant replacements costs are not mentioned quite as often.

I had one particular vendor with high standards that would exaggerate anything he found.My rule of thumb: people can live how they want to live as long as they are not 1. damaging the property2. living in filth that attracts pests3. impacting the neighbors (e.g. odors, junk detracting from the neighborhood, etc)4. creating an unsafe situation (e.g. hoarding and rescue workers can't access the home)When I visit a property, I document any issues and talk to the tenant.

@Chris SeveneyI do want to minimize liability considering I intended to have multiple properties under one LLC capped at 10 just because somewhere along the line I was told this is good practice.

@James Sedano If you feel this strongly in favor of having the trust, I would recommend a firm who specializes in estate law or has a practice group who does rather than a generalist.

Hi Alecia, thanks for the practical tips.

What I did to combat this was make the review standard clear to guests in all your messages to them.

And, if you think about it, having electric in only one spot isn't very practical. 

I hold and practice real estate out of Texas.