We purchased a 6 unit last in March and didn't have to deal much with propane. 

You definitely do NOT want to allow flammable liquids, propane tanks, and similar items to be stored.

Account ClosedA clarification is in order.All tax exempt entities are exposed to certain taxation in certain circumstances; when they engage in a trade or business on a regular basis, or when they utilize debt-financing.The taxable income generated from those activities are UBTI (unrelated business taxable income) and UDFI (Unrelated Debt-Financed Income), respectively.The tax paid is UBIT (Unrelated Business Income Tax)A qualified employer plan such as a 401(k) is generally subject to tax on debt-financed income. 

Being exposed to the other side:I grew up in big cities for the most part and spent a lot of time around those who had significantly more than I did (two-parent households, ski trips, big houses, the newest car every two years).

My story is written to expose to all real estate investors ( who are not contractors) that how exorbitant and pricey the repairs are.

You'll probably want to organize under an S-Corp or LLC, so there are legal expenses too.Don't forget, owning your own brokerage means that you'll be exposed to liability from the activities of your agents. 

The returns on real estate are rarely close to infinite, and in the cases where they are, you're either exposing yourself to a good bit of risk (high amounts of leverage) or you're spending an exorbitant amount of time working (no-money down deals).Sure, there are economies of scale in larger buildings and commercial, but you need to be able to afford entry into those deals, and $160K -- and more importantly, little experience -- is probably not enough to enter that market.

There is room in the basement, but it would expose the guts (furnaces, meters, water tanks) of the house to tenants.

I guess the only way that you would be exposed is if you sold prior to the end of the term.But this is a solid strategy.

Hey all,I'm currently rehabbing a split level house that has a 16' x 8' deck in the front of the house.The deck is built about 4 feet from the ground and leads to the front door.I had my landscaper remove a ton of overgrown weeds/ brush from underneath/ around the deck, but now it looks quite bare with the exposed beams atop a pile of mulch.