I also have a friend that bought brand new construction, but had to shell out tens of thousands in repairs because the home wasn't built properly, the inspection didn't catch the issues, the builder didn't have a warranty on the property, and insurance didn't cover all the problems.

If anyone who is knowledgeable, please chime in so I can relay such information to my friend so they can have proper step to follow.

im in Orange County CA and there is a huge market here for room by room rentals here. i've been doing this for quite some time (over a decade now), and it certainly has its pro's and cons. my advice if you go about this is make sure you do proper vetting before moving someone in... not only for financials/ credit-worthiness, but also for temperament and expectations in a co-living space. we ask a lot of questions like "how do you handle conflict?"

Having the books properly set up for the first time ever will help me get all the deductions I’m entitled to.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

There are so many options for LVP now, from lower priced to higher.Yeah, that's not a proper install, you'll have problems.

If your problems were really caused by an unexpected ac failure (can’t believe your realtor didn’t get seller to throw in a home warranty.) and not lifestyle.

They are very up front about the whole process and all the details.Before I go on, I want to make it clear that I am a small time entrepreneur and am in no way affiliated with the Capital Syndicate, Awesome REI or anyone else associated with this course.I bought the Capital Syndicate course because I wanted to see if I could apply it to a specific niche market.I bought all the add ons because I wanted to make sure I gave it every shot to work properly and because they offered a 30 day money back guarantee. 

You did things outside of the normal without proper knowledge.

Overall, for every type of property....I would say that keeping up with proper maintenance is what most people neglect.