Here's the key components to calculate your tax liabilityAdjusted cost basis - Is the purchase price, plus capital improvements, minus depreciation.

Only about $3k was spent to make upgrades and improvements to the property.

Investing in your self improvement is wonderful most people do not have the mindset for growth.   

Market Analysis: Palm Desert seems seasonal, so the cash flow challenge might not improve significantly without some adjustments.

I wouldn't be opposed to having a little skin in the game (closing costs, inspections, etc) I would be living there paying market rent and doing the improvements myself.

There are a couple of unique tax laws to real estate investors - 1031 exchange, bonus depreciation on certain improvements, Qualified Opportunity Zones, real estate professional status, etc.Make sure that the accountant you interview to understand the above concepts.best of luck!

Centralize your back office / use remote employees / VA where appropriate to cut costs and improve service levels / responsiveness.  5.

It wasn’t how I wanted to kick things off, but I worked with a contractor to get the bathroom fixed and functional.Once that was behind me, I focused on improving the building and maximizing income:I installed a shared washer and dryer for the tenants, a major upgrade that added convenience and increased the property’s value.I rented out the two garage parking spaces, bringing in consistent revenue.I also raised rents for the second- and third-floor tenants I inherited to be just below market-rate.

It might be worth a look and see if it suits your workflow.

Historically, full service management on the coast has been costly but in recent months management rates have come down and quality has improved.