We have converted oil boilers  to gas boilers to reduce costs. 

Get replacement cost hazard insurance along with an umbrella policy of at least $1M, probably double in your area.

(Net sales proceeds after all costs (PS. loan payoffs are considered proceeds.) minus purchase price is your taxable net gain.

Are there any hidden costs or legal issues I need to consider?

@Preet Oberoi Purchasing a short-term rental (STR) or tiny home to offset W-2 income with depreciation can be effective if structured correctly.

Repair costs would be $150k.

If the credit screening costs $25, then you earn nothing.I believe there are exceptions for a higher fee, but you have to stick to the actual cost of the screening.I would talk to an attorney before charging more than $25 per applicant.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

They also tend to offer good cash flow relative to their cost, especially in areas with high demand for affordable housing.

We have elected not to count any repairs or costs during 2022-2023 due to to it not being rented at all, not even calling it a second home.