Thanks@Linda Weiner this is all determined by the "basis" you are claiming on your taxes.

Then you have a basis from which to address it with the tenants when you take over or you have their authorization to withhold it from the security deposit. 

If Fed Funds lowers rates by say 100 basis points abruptly-- it means we are in tough times. 

A PMC, has to deal with whatever you buy on a daily basis, so they have the most "skin in the game" with you.PM us if you're interested in the Detroit market.

@Dennis O'Loughlinwhen you BRRRR, typically the improvements you make will go into the cost basis of the property. 

And the purchase of a larger property would add to your depreciable basis as well.Most interestingly - What kind of vacation could you take in SD each year for $42K? 

Spend some time every day here reading the posts, and ask questions of your own....the more the merrier.

As long as they pay all their bills and have been according to their credit check I'd rent to those people every day.

Get recommendations from the local ace hardware ect.You can start by hiring them on project per project basis to see how they operate and quality of work…unfortunately you will never know for certain, no matter how much research you do, until you work with them!

However, when you sell the individual condo units, capital gains tax will be triggered on the gains attributable to those sales.Allocation of Basis: The original purchase price and any improvements made should be allocated among the individual condo units to determine the basis for each unit.Gains Calculation: When selling a unit, the gain is calculated based on the difference between the allocated basis and the sale price of that unit.Partial 1031 Exchange: You may be able to use another 1031 exchange to defer gains on the sale of individual units if you reinvest the proceeds into other like-kind properties.