They are essentially hoping you don't notice all these little maneuvers and that you look to the bottom of the page to see a positive cash flow.

The best way to get through the door with subs is a recommendation/connection from someone they respect.

I could also see 15% corp tax and the whole no tax on tips thing.

I’d appreciate any guidance or tips to get started on the right path.

But a specialist could be helpful if you have unique situations, want to explore advanced strategies, or simply save time.Cost varies - some charge hourly, some a flat fee.I'd recommend checking the tax pro button on top of the page and scheduling a free consultation.

4.Tips to avoid similar issues in the future?

Hi Marshal, welcome to the community!

In a city like Philly, you will face many challenges - you need to learn the market and know the neighborhood and the block and make sure all of your numbers are within reason, you need very reliable contractors, you need a to understand the permit process, you need to be familiar with market expectations. 

I do value her as a cleaner and she definitely goes the extra mile and are the eyes and ears on the ground for me.

As you are finding out, it is so local that the next door building effects your investment.