Our portion out-of-pocket was the $3K deductible. 

Talk about I Robot, As for the internet not going down @Levi T. 

@Saika Maeda Permitting the ADU allows you to claim depreciation, operating expenses, and other tax deductions, potentially reducing your taxable rental income.

Your landlord could also allow the charges to compile until you leave, then deduct it from your deposit. 

Can we as landlords stick together and deduct all the non pay rents from our property tax?

However:Capital gains taxes can be minimized through deductions like rehab expenses, holding costs, and agent fees.Alternatively, if you decide to keep the Mooresville house and rent it out, you could potentially defer capital gains taxes through a 1031 exchange, but this only applies to investment properties (not primary residences).

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

Hello @Kyle Luman,In the first few years, tax deductions like depreciation typically offset cash flow, depending on the rate of rent growth.I also want to comment on your statement: “Buy in appreciating areas.

From my experience, to succeed in multifamily investing, focus on networking through local meetups, online forums, and professional connections, leveraging your CPA skills to analyze deals and optimize deductions.

The insurance quote is $1476/year, deductible $2500, 300k liability.