There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

Additionally, if your goal is to maximize personal financial benefits, consider profit distributions from the property-owning LLC, which may provide tax flexibility depending on your situation.By adhering to FMV, maintaining proper documentation, and structuring the lease agreement carefully, you can optimize tax benefits while staying compliant.This post does not create a CPA-Client relationship.

Additionally, we rented out a room for one year.

A little background about me, I have just over 200 doors in my current portfolio and our company manages just over 250 doors for third party investors in addition to those. 

Once you have read, underlined, highlighted and taken notes on that book, then I would move on to finding additional resources and groups.All the best! 

In addition, to factor in their debt load, I require the rent + monthly debt payments to be no more than 45% of their GROSS monthly income.

It should take me around 3-4 more months to save the additional funds.

That is NOT positive financial leverage, it’s closer to a Ponzi scheme in which you’re raising additional investor capital in order to distribute it right back to them and claim it as operating cashflow.

Additionally it will have to take care of itself so property management is included in this.

Went on to purchase additional rentals so tenants can pay down the loan and I build equity How did you find this deal and how did you negotiate it?