I'm not a fan of just including a flat fee in rent.

On your tax return you would report the proceeds, subtract costs and proceeds paid to seller, then the remaining profit would be your flat fee.

.- Rents staying flat while property taxes and insurance increase.- Unexpected expenses that eat into profits.For example, some investors who bought in 2022 at high interest rates expected strong rent growth to cover costs.

Now he has sold the company and is more of a flat rate charge based loosely on how long it takes him to prepare the return.

I used the excess funds to add an ADU via a build-to-suit exchange.

Hi Delroy,Congrats on your 2-flat purchase—exciting times ahead!

She charges a flat 10% rate. 

For example, an algorithm can't compare a property that charges a flat fee for utilities vs one that charges based on use. 

Excess depreciation could be suspended as a passive loss unless you qualify as a Real Estate Professional (REPS) or materially participate in a Short-Term Rental (STR)—which would allow you to use the additional depreciation to offset W-2 or business income.

To reduce FICA liability, consider maximizing profit-sharing contributions instead of excessive salary deferrals.