Correct - Track all your income and expenses.The bookkeeping will determine whether you are profitable or not.it will also be good to compare from year to year your income / expenses to see what expenses you can potentially try to limit.I.E.

Quote from @Hansen Tong: Hi Everyone looking for a CPA in CA that understands cost segregation, offsetting of w2 income through active short term rental partcipation etc. 

I am working toward passive income to live off of.

(income = 3 x monthly rent, Debt-To-Income, etc. can still be used!)

I mean myself and any bank would need more details, but if you utilize that large sum as a downpayment and have a small mortgage, wouldn't you easily qualify for the debt to income?

For example, I have two STR high-income earners (making 140k & 150k) in Joshua Tree for sale with low expenses, where the sellers will stay on to manage it.Making sure you are keeping as much as possible from the tax man is a huge component and to do so you usually have to invest it.

Whether you need a CPA with just three rentals depends on the complexity of your situation and your comfort level with DIY tax prep.If things are pretty straightforward, you might be fine with tax software for now.

Use that loan to pay the back taxes and get things under control.

Typically 75% of rental income can be applied towards your DTI for qualification. 

Somebody bought that house at Tax Sale.