You make $7K on the $175K property or $40K on the $1M property. 

Any advice on some additional improvements that could be done to potentially fix this problem without having to buy a new water heater?

It makes an extraordinary difference on IRR or your ROE to not have this affecting your equity.

You can contribute up to $69,000 combined as an employer and employee depending on your income.

They are known as the Winthrop Factors-The purpose for which the property was initially acquiredThe purpose for which the property was subsequently heldThe extent of improvements made to the propertyThe number and frequency of sales over timeThe extent to which the property has been disposed ofThe nature of the taxpayer’s business, including other activities and assetsThe amount of advertising/promotion, either directly or through a third partyThe listing of the property for sale through a brokerThe purpose of the held property at time of sale; the classification as an investor or dealer is determined on a property-by-property basis.To me intentionally buying a property to renovate it to resell it for profit, twice in the same year, and opened an entity to do it in ....is going to be ordinary income and not capital gains. 

I’ve been on this platform since college, and whenever I have questions, I just post them here, and other investors are always willing to share their insights.

@Alec McGinn research the rental market history.How many units typically on the market?

It really is a minefield out there.I know everyone likes the convenience of the web, and they are tired of hearing it, but this really is a business based on relationships, not online anonymity.

I think you posted on Reddit too? 

After I bought my place, I found a tenant on Craigslist.