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 would say it is on life support because after refi the negative cash flow necessitates extra reserves.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

Here in Denver, it makes so much sense to add that room or just pay a little extra for a 5br house up front. 

Also I went through 5 property management companies, all of them skimmed a little extra, got in fights with the tenants, etc.  

Depending on the location, guests are likely to explore places of interest anyway, so you can help them plan and earn a bit extra.

If it has no central air/heat I assume you’d probably get an extra $1,000 or $2,000 in value?

Get an extra job, live off of nothing, and go put 3-5% down on a single family house hack.

An Attorney will help with creating an LLC.LLC is not required, may make getting financing more difficult.It may provide some asset protection.Most of the asset protection that you need will come from the insurance policy.Discuss with the insurance agent on situations that you are not protected.Have a discussion with an attorney if your extra concerns can be protected through an LLC.

It is not necessary to provide one but it was easy for us as we had an extra.