In your case, with a history of passing audits and having a CPA who is experienced in IRS representation, you're in a strong position should an audit occur.Regarding audit statistics, the IRS generally audits fewer than 0.5% of individual returns, with even lower rates for those earning under $1 million annually.

- Proactive Tenant Management – Focusing on a solid tenant screening process and keeping up with regular communication and maintenance has helped cut down on vacancies and avoid evictions.- Tech-Driven Operations – Using property management software for things like rent collection, maintenance requests, and communication has made everything smoother and saved a ton of time.- Curb Appeal & Upkeep – First impressions matter!

You’ll need to manage the property more actively, stay on top of furnishing and maintenance, and market it effectively to your target audience.In Cleveland, most tenants looking for mid-term rentals prefer a price point below $2,200 per month.

House-hacking a smaller multi-family is also a great way to get oriented with being a landlord, property maintenance, property improvements and other things, while also helping to pay your mortgage! 

With more than one unit, the biggest difference is that you have tenants complaining about each other and the property picks up more of the maintenance, like lawn mowing.There is a huge difference when you get to 5+ units as those are valued using the income method. 

Your real life returns will be slashed due to - higher vacancy rates, high maintenance and repair costs, non payment of rent, eviction filings.Here are some good cardinal rules I follow:1.

On either an A class property or a commercial building, I would do preventative maintenance, but beyond that I wouldn't worry about it. 

Although rents increased by 2% annually, the purchasing power of this income is equivalent to $4,325 in today's dollars.Year 10: $5,000 x (1 + 2%)^10 / (1 + 5%)^10 ≈ $3,742Year 15: $5,000 x (1 + 2%)^15 / (1 + 5%)^15 ≈ $3,237Year 20: $5,000 x (1 + 2%)^20 / (1 + 5%)^20 ≈ $2,800Due to rent increases failing to keep pace with inflation, you won't be able to maintain your standard of living.

With used cars averaging $34,859 and full-coverage insurance costing $2,496 annually, only California is pricier.

Annual home appreciation, rental appreciation and the property management teams in these markets are attractive for investors too.