I utilized those funds to purchase 18 rental units.

Also, be sure to check with the section 8 agency managing the tenants - sometimes if you pass on an additional cost like that they will no longer be eligible to live there if the rent and utilities exceed what they were approved for.

If I would have used competent management, the manager that I picked and vetted, then it would have cash flowed, assuming they could have filled the vacancies.The big lesson I learned is that the property manager selected can make or break a deal. 

all materials, all labor costs to others, Not you, utilities, interest payments, permits, licenses, auto/truck expenses, tools needed are all deductable. 

Additionally, they've avoided 40-50 hard credit inquiries populating on their credit as a result of the soft credit inquiry that we utilize for DSCR loans.If DSCR loans are a new thing to you, I would recommend checking out some articles here on Bigger Pockets or giving me a call to learn more.

Outcome currently is a rented basement for $1,350 a month + $130 in utilities while I live in the upstairs unit.

We were looking in the Smokey’s and in Florida but we might just shift to our hometown and house back it with the ADU unit utilized for STR. 

I am glad they realize that I should not be responsible for the cost of a toilet that failed due to a guest accidentally dropping a vape in the toilet and picked up the replacement cost.  

The cashflow should cove ALL of the expenses for the primary (mortgage, taxes, insurance, utilities, etc) AND put money in their pocket.

Quote from @Mike Oliks: Picking the best CRM for 2024 depends on what you're after.