It’s cash flowing about $50/month after everything (PITI, flood insurance, home warranty, excess liability & termite protection) - if I got ride of termite it would cash flow $125.

(If you are out of state, you may seriously consider using a good property manager because of screening tenants, vandalism, squatting, and various other reasons -- they do protect your investment).

AND Its my contract the customer signs .

Quote from @Anthony Therrien-Bernard: Quote from @Kyle Mccaw: @Rafael Valdor You’re absolutely right to prioritize tenant screening—it's one of the most critical aspects of protecting your investment.

Whie DOS lender risk may or may not be high, being ininsured is... well, enjoy your 'asset protection'.

You want both customers.  

@Maxwell Silva - In marketing / advertising, products and services are not expected to be sold the first time a potential customer is exposed to them.

Include a buyout clause allowing you to transition to sole ownership after two years, based on a pre-determined valuation formula or market value.Use an LLC to hold the property for liability protection and pass-through taxation, ensuring both partners benefit from depreciation to offset rental income.

This could turn a potential loss into positive cash flow while protecting your property’s value.

Explore multifamily or out-of-state investments for higher yields.Setting up an LLC provides liability protection but has no tax benefit for you now.This post does not create a CPA-Client relationship.