And THEN, the same $1 fee is required when doing a transfer to pay me their utility bills, so then I discounted those by $1 too.

The canceling tenant remains responsible for rent, utilities, and other charges until a replacement takes over.

I utilized those funds to purchase 18 rental units.

Here are the key numbers:Potential purchase price: Mid-$400k rangeAppraised value: Estimated at ~$500kRehabbed comparable properties (comps): ~$580-600kMonthly PITI (with 5% down, including mortgage insurance): ~$3400First-year PITI (with 2-1 buydown): ~$2900Monthly income (after taxes): ~4-5kLiving expenses (utilities, groceries, etc.): ~$1600Savings available: ~15-20% of the purchase priceCash to close: ~$34kRehab estimate: ~$34kRemaining reserves: ~$20-25kTo fully fund the rehab, I’d need to come up with an additional ~$15k in the short term, which I anticipate paying back quickly once the rental portion is generating income.

all materials, all labor costs to others, Not you, utilities, interest payments, permits, licenses, auto/truck expenses, tools needed are all deductable. 

Renting at FMV ensures the property qualifies as an investment while preserving its long-term utility for your portfolio.This post does not create a CPA-Client relationship.

Outcome currently is a rented basement for $1,350 a month + $130 in utilities while I live in the upstairs unit.

@Marc Robinson some may be more adventurous than me but with septic and well I would walk awayI prefer TOH of course but with $300 lot rent and 19 occupied, utilities included in rent I would pay $400-450k for this

Then utilize the same designs.

We were looking in the Smokey’s and in Florida but we might just shift to our hometown and house back it with the ADU unit utilized for STR.