I feel like I’m very blessed and lucky to be in my current situation and that I could be better utilizing my financial situation to build real wealth instead of clawing away at it annually via W2 wage income only (and saving only ~$70k/year).Unfortunately when I model out deals, with today’s cap rate environment, I can’t find anything that generates meaningful levered free cash flow.

For example, repeals of the current annual property tax increase limits, or even limits on rental income or its income tax treatment in the state. 

You will take a dediction on Schedule E and then continue to take an annual depreciation deduction every year in the future while you own the property.

Big thing is going to be sure you do your annual filings (should be short and simple other than taxes which you should have a professional filing for you anyways) and keeping your personal assets (cash) separate from your business assets.

If you know something is going to have a long lead time (fireplace inspection, furnace inspection, etc...) then put it on your annual calendar to get those scheduled several weeks or a month in advance of when you need it.

Income is the rent - annual depreciation of the structure - any other expenses that went into the owning/maintaining of the RE. 

Gross Rent Multiplier (GRM) is the ratio of the selling price to its annual gross rental income.A lower GRM may signal higher returns.

@Melanie HeigesAlways happy to help...Typically, you would buy the property with the hard money loan with 6 month terms.As an example, 2%-4% (or points) upfront with 12% annual interest with the loan due at 6 months.

Hi Kevin,My go to commercial real estate reports are:IRR's annual Commercial Real Estate Trends ReportPWC's annual Emerging Trends in Real EstateCBRE's biannual North American Cap Rate SurveyRCLCO's quarterly State of the Real Estate MarketMarcus and Millichap's annual US Multifamily Investment ForecastI am certain that all the ongoing info you need will be included in these reports!

No annual requirements on audits or reviews of financials (save money from hiring CPA consultants).