The IRS cross-references your 1098s with claimed deductions, raising concerns if discrepancies arise.Private Lenders and Forms 1098: Private lenders are required to send Forms 1098, but only if they meet specific criteria:The private lender operates as a “trade or business,” distinguishing professional lenders from casual lenders like friends or family members.The loan is issued to an individual or a disregarded single-member LLC.The loan is a mortgage secured by real property.The annual interest paid on the mortgage was $600 or more for the previous year.The conditions leave some room for interpretation, particularly regarding the “trade or business” clause.

Total existing-home sales were down 4.3% from February to a seasonally adjusted annual rate of 4.19 million in March.

In order to determine NOI, do I include only annual repair and maintenance expenses or also a budget for long-term capital expenditures (roof, heating, etc)?

Let's assume the property has $313,000 in NOIValued at 6.26 M 5% cap loan $4,695,000P+I annual= $413,400> NOI5.216M 6% cap loan $3,912,000P+I annual= 344,460 > NOI4.47M 7% cap loan $3,352,500P+I annual= $294,708 <NOI cash flow +

It costs me about $1,000 a year with annual filings and other nonsense.

@Scott Wolf Florida 

But you have to be there 10 years consistently after obtaining the proper residency and approved permits AND meet the annual donation requirements, THEN it will be reduced to 5%.However, after reviewing this again,I feel all the other details associated with Act 60 is not really worth my while.

From being thorough in the screening to the annual inspection.

Your purchase price was 15.6x the annual gross income, so this property sold at a 15.6 gross rent multiplier (GRM).If you do the renovation and add the ADU, the property will generate $13,400/month ($2200 + $2200 + $5000 + $4000).

totally hear you, pre 2021 in knoxville was a totally different ball game. again depending on your goals and strategies, your expectations aren't unrealistic. some deals may require more of an investment to make the numbers work like one of my student rentals that was a full gut project and took nearly a year to complete yet it spits out 15% cash on cash returns annually and i purchased that late 2022. investing in general is a risky endeavor, it's all relative to ones own risk tolerance depending on their position. we try and make calculated risks and look to evaluate multiple exits before pulling the trigger, yet there is still some risk involved. maybe a reit or syndication is the way to go if you want to be in real estate yet don't want to take on the properties yourself. either way i'm happy to make some local connections.