If not, we dont really need to get into petty trivial debates or negativity and are not influenced by that. 

Converting your single-family home into a rental property involves several considerations to protect yourself and ensure smooth operations: Establish an LLC:Liability Protection: Holding the rental property in an LLC can protect your personal assets from potential lawsuits related to the property.Tax Benefits: An LLC can offer tax advantages, such as pass-through taxation, where rental income is taxed at your individual income tax rate.Insurance:Landlord Insurance: Ensures coverage for property damage, liability claims, and loss of rental income.Umbrella Policy: Provides additional liability coverage beyond your landlord insurance, offering extra protection.Deductions:Mortgage Interest and Property Taxes: Continue to deduct these expenses.Depreciation: Depreciate the cost of the property over 27.5 years, excluding the land value.Maintenance and Repairs: Deduct costs related to maintaining the property.Property Management Fees: Deduct fees paid to the property manager.Filing Taxes:Schedule E: Report rental income and expenses on Schedule E of your tax return.Separate Accounts: Maintain separate bank accounts for rental income and expenses to simplify bookkeeping.Lease Agreement:Solid Lease Terms: Ensure your lease agreement is thorough, covering rent amount, due date, late fees, maintenance responsibilities, and eviction terms.Legal Review: Have the lease agreement reviewed by a real estate attorney to ensure compliance with local laws.Tenant Screening:Background Checks: Perform credit, criminal, and eviction history checks on prospective tenants.References: Contact previous landlords and employers for references.Property Management:Regular Inspections: Schedule regular property inspections to ensure it's being maintained properly.Maintenance Fund: Set aside a reserve fund for unexpected repairs and maintenance.Moving Out of State:Communication: Maintain open communication with your property manager.

I to,d him if he thought selling Cutco knives was challenging, imagine trying to sell a person on investing $50k or more with a sponsor that has yet to perform in this RE market (regardless if the value add is smart and likely to do well).  

BUT, we do see some notable exceptions with condos that perform very well.

I manage a few MTRs in that area and they perform well. 

The 1031 exchange must be performed by an unrelated 3rd party whose only role can be performing the 1031. 

Quote from @Steven Gesis:  Important takeaway is due diligence review, not only deal level but sponsor track record - yes, past performance is not indicative of future results, but at least it's a metric to review.   

Quote from @Magda Lipinska: Short-term rental (STR) will generally out-perform a long-term rental (LTR), but it's not a guarantee.

we take contingent offers.. but we do require 10 to 20k non refundable release to us.. if they dont have the cash at closing then they lose the deposit .. but we dont sue them to perform. out of about 75 sales now.. we have seen probably 5 or 6 fail because their current home did not sell.

Property Management EvaluationPerformance Metrics: Evaluate the performance metrics of Ace Management and Reality.