At the end of the year, I also usually get an annual statement summarizing all of the fees by category for my taxes. 

For that reason, we will assume a smaller 4.5% for the annual appreciation of real estate in Colorado Springs.To calculate the total appreciation value at the end of five years, we use the formula:Future Value = Present Value × (1+Appreciation Rate)^nFor a property with a purchase price of $450,000 and an annual appreciation rate of 4.5%, the value after 5 years can be calculated as follows:Future Value = 450,000 × (1+0.045)^5 = 560,781.8719560,781.87 - 450,000 = 110,781.87.

But they will require you to file an annual report. 

Free downloads are a perk exclusive to Pro Annual members.

We met all non-passive requirements and can provide proof to show that our projected annual materially-active involvement is at least 500 for 2023.We met with our CPA and he brought to our attention that we had a loss of -$107k.

The important measurements are annual earnings and net worth.

Tourism and Vacation Rentals: With famous attractions like Disney World, Universal Studios, and miles of beautiful beaches, Florida attracts millions of tourists annually.

The property has appreciated 10-13% over the past 4 years (2-3% annually).30 year mortgage at 2.75.

So while the rents should be getting $1100-$1200, if you submitted it cash flowing at $1200, but the rents come in "officially" at $900, then that is a HUGE difference in annualized return and likely the source of the leverage drop.

Account for future rent increases by implementing value-add strategies and including provisions for annual rent escalations in lease agreements.