I would assume you would escrow 3 months of this as well to your escrow account to be paid out annually be your lender....Hope this helps, maybe the confusion is you did not realize that in edition to the escrow funding you needed to pay homeowners and flood premiums in full?

I would only inch it up annually like $25 on a $1,225 rental rate. 

After that, check on Dataroma.com and see if any famous, successful investors like Buffett own any REITs, and pull up the investor presentations and annual reports and see if you like what they see in it.  

Here's an example of a recent valuation in BK Heights:The townhouse is 6,000sqft and has 8 units in total.If kept as is, there will be 8 1br apartments of 650sqft each $3,350 x8 x12 = 321k is the annual incomeNow if renovation costs allow, seller could convert it into 6 big 2br apartments that would collect a much higher rent:$5,000 x6 x12 = 360k would be the newer annual incomeThere's a high demand for 2br in the area, so he could fill the vacancies quickly and sell at a considerably higher NOI.Also, an appealing configuration is legalizing the basement, keep it as a rental unit and convert the remaining space into a single unit.

Income generated by properties is generally shielded through depreciation, providing investors with the long-term benefits of substantial cash flow and very little tax burden.IRS rules allow owners to take annual losses in the form of depreciation to smooth out eventual capital expenditures as buildings age.

@Scott Trench 's Set for Life has been recognized as a finalist in the 20th annual Foreword INDIES Book of the Year Awards! 

Is anyone aware of alternatives to paying LLC annual report fees?

Honestly, my annual ROI on the LV property is really low around 3.5% because I really had no idea what I was doing when I purchased the house.

In Job CreationCOLLEGE STATION (Real Estate Center) – The Texas economy continues to outpace the U.S. economy in job creation.According to the Real Estate Center’s latest Monthly Review of the Texas Economy, the state gained 285,200 nonagricultural jobs from February 2017 to February 2018, an annual growth rate of 2.3 percent, higher than the nation’s employment growth rate of 1.6 percent.

Episode 272 is my favorite and I think I need to relisten to it a few more times.The last few years of my life Ive started an online juggling store and run an annual circus camp for adults in California.