Handle a few properties for other owners, minor repairs, find new tenants, and rake in 10% .

The property works flawlessly for a year or two with zero repairs/calls/turnover.)

Big demand for auto repair or auto accessories.

Expenses incurred before the property is in service are considered capital expenditures and must be added to the property’s basis rather than deducted immediately.This means costs like rehab expenses, repairs, and other improvements made before the property is ready to rent are added to the property’s purchase price and can be depreciated over time once the property is in service.

I recommend establishing a reserve fund for major turnover expenses, capital repairs like a roof replacement, etc.

Use tax benefits like depreciation, repair deductions, and tax-free refinance proceeds to offset income, and consider an LLC for liability protection.

On paper we were slightly in the red but much of that is due to one-year expenses/repairs & allowable transportation costs to get up to the property for work days ourselves. 

Renting out mobile homes can be a great source of cash flow but they’re notorious for being damaged significantly by tenants and tend to need a good bit of repairs before renting out to the next tenant.

This could make the sale more appealing by solving a logistical challenge for the landlord.Things to Keep in MindUnderwrite Conservatively: Make sure you account for all costs, including property taxes, maintenance, and potential repairs.

Rental income and expenses, such as mortgage interest, property taxes, repairs, and depreciation, can be reported on Schedule E of your personal tax return, regardless of ownership structure.