Also, you will likely only be able to use the rent to offset the mortgage pmt debt on the rental property to $0 since you dont have any Sched E history yet. 

Still, not changing over the utilities in the winter is stupid but the PM should have checked the unit to make sure everything was set properly - heat down but not off, lights off, etc. 

Just need to stat under the occupancy limit.Also keep in mind basement needs to be livable square footage, ie have egress and proper ceiling height. 

Cash invested: $65,000 Sale price: $97,000This property was a very early lesson learned in private mortgage financings for me.

Forewarning: This is going to be long and detailed.How this started:When we were young, we would buy a house that was livable, but in need of rehabbing, move into it (which allowed us to get a low interest residential mortgage), then rehab it, using contractors for what we couldn’t do ourselves.

The Numbers:Cash Flow Analysis: Investors typically look for properties that will generate positive cash flow—meaning the income from rent covers the property’s expenses (mortgage, taxes, maintenance, etc.) and then some.

We like the short-term rental idea because we could stay at the property ourselves when we want - summer break, spring/winter breaks, etc.Our budget will be right around $1M or less ideally, and we would like a short distance to the ocean.How likely is it that we could find a property as described above and have it cover or come close to covering the mortgage? 

Even if you rent at a break even or slight loss, if you could have 3 years of rental income offsetting your mortgage while realizing 3-6% appreciation, could be worth it, especially if you think appreciating for this area will exceed national averages.

Our mortgage brokerage works with real estate investors all across the country who face these same decisions regularly.

You may be able to deduct mortgage interest and property taxes before the property is in service.