We used to own all of our houses but are about 50/50 lease vs. own, mainly because leasing allows us to move faster when opening additional houses. 

The IRS requires the hours to be specifically in real estate trades or businesses, which typically means activities directly related to owning, developing, operating, or managing real estate properties.IRS Publication 925 outlines what counts as real estate trade or business activities, like development, construction, acquisition, management, leasing, and rental operations.

The tenant is less likely to trash a place or violate the lease if you hold a large chunk of money. 

@Raghavendra Jakkani first, agree with everyone else about every occcupant 18+ being screened & signing the lease, with one exception - an occupant that is claimed on another occupant's tax return as a dependent.

Common fees will include a set-up fee, a leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more.

For single-family and multi-family rentals - plan to put 20-25% down on investment properties.If you find a rental from 2-4 units with a month to month lease or a vacant unit that you could technically move into/would move into after buying within 60 days - plan to put 3.5-5% down. 

Highly advise taking the ADU and the first floor unit and creating a master "single lease'.

At the same time, look to see if he left any contact information behind and reach out to family to determine his status.If you can't contact anyone soon, I would consider moving his belongings to storage, terminating the lease, and finding a new roommate.Because you are in California, I would consult an attorney.

Wondering if you have any particular online companies you recommend that checks evictions, credit reports, collects rents, provides a lease, etc... all in one place. what are some of the pros and cons you have experienced with each company. thanks

The tenant has caused damage and broken the lease so she is going to vacate in December.