When it comes to housing, the FHA rules apply in addition to those of your state/city.

On top of that (even with the insurance rate increases here) it STILL almost hits the 1% rule in terms of cashflow.

Hey @Joel Oh, so let's clarify the NYC rules around STRs.STRs are legal in NYC as long as these directions are followed."

Also, here's a great article that describes the REPS status:https://www.aicpa-cima.com/resources/article/tax-rules-for-r...And another for the passive activity loss limitation that other mentioned:https://www.irs.gov/publications/p925

Here are some key elements to include:Lease Agreements: Ensure your contracts reflect the latest laws, such as notice periods for entry or rules around security deposits.Fair Housing Compliance: Familiarize yourself with federal, state, and local fair housing laws to avoid discriminatory practices.Property Standards: Regularly inspect your properties to ensure they meet safety and habitability standards.Tax Documentation: Keep accurate records to comply with tax reporting requirements.4.

If so, shifting that to the tenants at the time of lease renewal is another great way to decrease her overall debt service.This has already been ruled to be against the substantial change of lease terms. 

Remember also, that FHA is generally intended for an owner-occupant/primary-residence for at least the first 12 months, but as was discussed above this can be worked around.If a client qualifies for Conventional I almost always advise them to use that product rather than FHA as a general rule - but a lender will have the more relevant, tailored advice.

With this one I would a paragraph that states " in case of any unforeseen circumstances due to the plumbing, we ask that you not flush wipes or pour grease down the drains "  that way you have stated that in the rules part of the listing.  

In a very loose rule-of-thumb estimate, your Net Income (revenue minus expense) may be about 50~60% of the gross revenue. 

Make sure you know the rules in the state where the property is located.