Gross beaches and just plain sucked.

Probably not good for something that grosses $30k but will provide outsized value on larger bookings. 

There are some key limitations that are important:Passive losses can only offset passive income.Up to $25,000 in passive rental losses may be deducted against non-passive income if the investor actively participates and their modified adjusted gross income is below $100,000.Unused passive losses are carried forward to future tax years.Here’s an IRS article that further discusses the rules: https://www.irs.gov/publications/p9251031 ExchangesThis strategy allows investors to defer capital gains tax when they sell a property if they invest the sale proceeds into a “like-kind” property.

We're pretty conservative with our numbers, so we set vacancy at 1 month rent lost every 12 months, or 8.33% of gross rents.

I have a handyman that I pay the equivalent of 3% of monthly gross, and I use Buildium pro to self-manage my 14 units.

The $1,000/month is a gross number and doesn't include Insurance, vacancy, maintenance, or any other expenses. 

Some lenders may not be able to apply or only be able to apply a fraction of the gross rents (if any depending on the lender) to contribute to your Debt-To-Income-Ratio. 

If buyer’s brokerage firm: (i) procures a buyer; and (ii) the transaction results in a closing of the Sale of the Property to such buyer, Seller’s Brokerage Firm may enter into a compensation agreement with buyer’s brokerage firm to contribute from the Sale Compensation an amount of ___% of the gross purchase price or $_____, in U.S. dollars to buyer’s brokerage firm.) 

Did you get copies of their schedule E tax returns on this property to confirm their gross and net income?

I was only 15-years old when I started working for the landlord and even though I knew nothing about managing properties I knew the landlord was spending more for repairs than his gross income.