In addition to that, building your network is key.

In addition, you want a separate bank account for the rental property to separate it from your personal accounts.

I had one overall criteria and that was could I create additional value and could it pencil. 

My last note would be to try to buy 3 or less replacement properties, it makes the exchange much easier and you avoid some additional rules.

Once you have cash in hand, you can unlock the unit for 24 hours and let him move his stuff out.I would also consider charging an additional deposit of $500 or something, just to prevent him from leaving all the trash or stealing your refrigerator.

Sounds like you put in a ton of work to maximize the value, and that basement addition was a smart move.I noticed you mentioned the NYC luxury tax and some of the rental pricing challenges—have you considered expanding your portfolio in markets where you don’t have to deal with those kinds of headaches?

The hard money 10% plus additional thousands in closing costs was too much to swallow. 

Be prepared to come in with additional cash to close due the the appraisal.   

I was interested in something like owning a rental property as a way to generate some additional income. 

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.