You will need to make sure that are no gaps in windows, doors, etc and that the HVAC system is well maintained as a tenant could argue that lack of remediation is the culprit for a high utility bill.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

@Jack PasmoreFor me, building trust and maintaining authentic relationships comes down to consistency and value.

Ensuring your rental market can sustain these costs will help maintain profitability over time.The 7% DSCR loan is relatively high, and refinancing later at a lower rate could improve your long-term cash flow.

Use tools like Buildertrend or CoConstruct to manage the project, track expenses, and maintain clear communication with the GC and subs.

If structured correctly, an S-Corp can offer significant tax savings while maintaining the benefit of rental loss deductions.

Aaron, your strategy of leveraging equity through refinancing to pull out tax-free cash while maintaining cash flow makes a lot of sense, especially with the stability of W-2 income.

Stoked for you and your journey to financial freedom.

If your opt-out percentage is too high then it may look suspicious to the carriers; ultimately, affecting your delivery rates.The goal is to keep you opt-out percentage low while maintaining compliance. 

Transferring the rentals into LLCs before marriage helps maintain separation and adds liability protection, but California’s $800 per LLC annual fee makes it costly.