Counter argument:Paying off a house reduces risk by eliminating mortgage payments.

Any advice on managing this situation, reducing costs, or navigating the permit process would be greatly appreciated.

Just curious as there is always some other nifty piece of software with its hand out to reduce our net profits

See case examples below.Hiring a property management company helps to reduce the landlord’s personal and professional liabilities because there is now a 3rd party involved who has been hired to perform the work that is required.

This reduces the amount of debt you owe and increases your net worth.

Debt reduces certain kinds of risk.

- Moving beyond 4-plex turns into commercial mortgage loans, which I think will reduce the pool of potential buyers.- If we play to hold, I'm not sure if the rental income will make this a worthy enough investment, but I could be wrong.What do you think of this situation here?

There are several turnkey providers in town who can handle the process for you from top to bottom but you will give up some of the equity for the ease/reduced risk of the transaction.

Theoretically if they can justify the fee they were charging then the fee could still stand, but more likely they cannot and will have to reduce the fee substantially.

If you are a real estate professional, you may potentially be able to buy some rental properties, perform cost segregation studies and eliminate the taxable income.The issue, is in a couple more years, your PM company will likely be more profitable and you will have rental proprties with reduced depreciation, further increasing your tax burden.