.✅ Indirect Expenses (Office Overhead, Admin, & Labor): Harder to allocate, but common methods include:2) Common Billing Methods🔹 % of Gross Rents – Many PMs charge 3-5% for admin overhead.🔹 Per-Unit Fee – Flat $10-$20 per unit/month for shared costs.🔹 Time Tracking – Track staff hours and bill properties proportionally.🔹 Software Tools – AppFolio, Buildium, Rent Manager allow bulk allocations.3) Best Practices✔ Use a Spreadsheet or Software – Track expenses by property before invoicing owners.✔ Be Transparent – Define billable vs. included costs in your PM agreement.✔ Avoid Surprises – Owners expect clarity on additional charges.

Use either the simplified method ($5 per sq. ft., up to 300 sq. ft.) or actual expenses.🚗 Mileage Deduction – Standard $0.67 per mile or actual vehicle expenses.💼 Startup Costs – Deduct up to $5,000 in the first year (if total costs are under $50K).📢 Marketing Expenses – Ads, branding, and website costs are fully deductible.⚠️ IRS & BOI Penalties to Avoid:🛑 Late business tax filings = 5% penalty per month on unpaid taxes (up to 25%).🛑 BOI Reporting non-compliance = $591 per day in fines, up to $10,000 + potential jail time.Final Tip: Many business owners work with a CPA to ensure tax compliance and maximize deductions.

Good luck, My wife and I are starting also, we also plan to do the BRRR, method,would love to talk more, maybe shares some do's and dont's that you may run across and we could share the same info to you. we are in the st louis area

Commissioner, 73 T.C. 766 (1980), specifically confirmed that rental management activities can qualify for the home office deduction, regardless of passive income classification.Key Considerations: 🔑The space must be used ONLY for rental managementNo personal activities or other business uses allowedMust maintain solid documentationActivities should be regular and substantialPro Tips: 💪Consider the simplified method ($5/sq ft, max 300 sq ft)[Rev.

The BEST method for real estate investing is very simple: increase earnings, reduce expenditures, save, and invest from your own funds.You should focus on increasing earnings and learning how to manage your budget.

Any ideas on how I could access capital either through the equity in my other properties or another method? 

I would select one marketing method and become an expert at it.

But, the seller will never close a sale until the buyer releases that claim and withdraws the affidavit because a new buyer's title company will not issue a title policy and the new buyer's mortgage lender will not make a mortgage loan.Its not worth doing in this case but when real money is involved it is pretty effective.

Peter Harris - you have to change your sales funnel method!

My next goal is to implement the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) method, specifically in Birmingham, AL, and focus on Section 8 properties.With relatively good rehabs, I’m not looking to be a "slumlord"—I want to provide quality housing for tenants while also ensuring my investment is successful.I’ve heard mixed reviews about Section 8 tenants, but I’m eager to learn more.