Transferring a property title later could be deemed a taxable gift if it exceeds the annual exclusion ($17,000 for 2024).

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Your income isn't high enough for it to make sense as a rental and the closer you get to your residence limit the greater pressure you will have to sell it before losing your exclusion in whole or part. 500k right now can make $15k per year income with zero maintenance or tenant risks. 

This doesn't replace the need for a MSA that will capture additional clauses needed on a Contractor-SubContractor relationship, this is just a project specific form you would use in addition to the MSA (prepared by your Attorney):This template is for informational purposes only and does not constitute legal advice.

Unlikely to be any tax due if this is your first gift, but it will count against your lifetime exclusion down the road. 

Here are some additional comments to add - please be sure to read the last comment regarding making contributions to both an IRA and 401k.Can I set up a SDIRA if I have full-time job?

Additionally, most of the costs to make an asset ready for it's intended business use are capitalized and part of the cost of the asset. 

We have almost exclusively residential but have a few small retail rentals.

Man, just in 3 years if you have the tenant leave every time, even without the negative cashflow, that alone can cost you an additional 20 or 30k.

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