If your hold period is short, it may not make sense to take bonus depreciation.BENEFIT - Clearly additional depreciation is the benefit, but only if you can use it. 

If there's a second call for the same issue we have the line camera'd to verify the line is in good shape and that it is clear going forward, and charge the tenant if the clog was their fault but do not charge if we discover a mechanical defect; we fix the defect. 

I used both and now own the property free and clear. 

Clear Exit Strategy Since you’re dealing with a short-term loan structure, having a clear exit strategy is key.

If there was a clear lease violation sufficiently serious and they were given written warnings to correct the issue and did not then you could probably evict.

Even if they do not, it’s not your legal responsibility.Long version: It actually depends on your method of payment, and it’s not always clear.Credit card payments: clearly not you problem, no 1099s needed.Zelle payments: you DO need to send 1099s for Zelle payments.PayPal, Venmo and Cash App payments: this is where it gets tricky.

To be clear, I'm not talking about "ideal world" scenarios, this is real world. 

I also added language to make it clear that any temperature adjustments should be reasonable, so it’s not left open for tenants to make claims.

@Matt McNabbYou’re in a great position to start building your real estate portfolio with clear goals and strong resources.

BTW, the rental property is cash flow positive.Good questions @Bob DoleJust a quick not to clear up any confusion, Flips are not rentals, and as a result, don't depreciate.