Even when they are charging you a very high percentage, the agent is probably operating at a loss.

or never, if purchased incorrectly.today's random example of how chasing cash flow can go sideways:Sell at a loss or rent at a lossalso, you mentioned buying a distressed property and rehabbing it. 

You must work at least 750 hours per year in a qualified RE business.So most people who have high-earning W-2 jobs outside of real estate won't qualify.But the unique thing about RE pro status is that even if you don’t qualify but your spouse does, you can both file jointly and claim the losses from your RE investments to offset your other active income together.It's an incredibly powerful benefit if you do meet the criteria.

So all in all - it was a relatively easy learning lesson and not much loss on my end.  

But you are required to file a Schedule E in the US every year showing the total rents you received, the expenses you had against those  rents and your subsequent profit or loss. 

- Loss of historical data (for both IRS audits and for personal portfolio tracking.)You should be able to print the general ledger and Balance sheet / income statement for each period.

It outlines profit and losses from rental real estate.

., mortgage interest, repairs), and up to $25,000 in passive loss deductions if your MAGI is under $150K.

And for example if they see a property was taken back by the bank and is not shown on the track record as a huge loss, then that is another type of red flag.Internet searches can also be done on the sponsor looking for lawsuits, etc.

So monthly expenses are $2809.I'm assuming for the sake of this conversation that you charge $150 per night and are occupied 50% (15 nights a month), so your projected income should be $2250 per month.If the above numbers are accurate, you will have an operating loss of -$559 per month.