Make sure to plan ahead and speak to an investor friendly lender that can help you look ahead at potential roadblocks and how to avoid them or overcome them before getting your self into a sticky situation. 

The best part is they are buying these homes with a little as 5% down, they are being taught how to self manage,  and are given the systems to be on auto pilot with out having to hire PM.  

one i self-manage. 

We have 12-doors in Detroit that we still own and self-manage, all of which have gone up in value 2-3x.

A couple ideas below:- Have tenants pay utilities if they don't already- Refinance into lower rate- Increase rents (or convert to mid term/short term rental or rent by the room)- Call the county tax assessor's office to ensure there was no mistake in the tax increase- Call your insurance broker to get you other quotes- Sell the property and 1031 into a better market that does not have those issues- Self manage if you currently have a property managerHope these help!

Luckily the guest plays for the NFL and is going to pay but my client self insures and had no coverage. 

My wife and I purchased our first rental property here in Maui in June of 2023 to use as an STR as it was a consistent market, numbers worked, and we live 5 minutes away from the property so self-managing made sense! 

Thanks, yes I am self-managing.

This is the IRS "intro":https://www.irs.gov/businesses/small-businesses-self-employe...and this is their 256-page guide to train their auditors:https://www.irs.gov/pub/irs-pdf/p5712.pdfSo yes, you will come across different opinions from different tax professionals.

As long as the property generates enough cash flow to service the debt, you qualify—without the need for personal income verification.This type of loan is ideal for those serious about growing their real estate portfolio, especially if you’re self-employed or have irregular income streams.Why DSCR Loans Matter for Real Estate InvestorsWhen it comes to real estate investing, traditional loans can often be restrictive, requiring personal income verification and imposing limits on the amount you can borrow.