@Chuk ObiaziReal estate investing can be aided by joining local REIAs, attending networking events, and participating in mentorship programs.

You can take participant loans from a Solo 401k, but not an IRA.

There were bushes and poison ivy so mature, you could barely see the home before.

After considering all costs, I was barely making more than I would as a long-term rental and it was taking up a lot of my time.

You tend to see higher turnover when it's that small; good chance the property owner or property manager can't find people that a) only want 700 sq ft and b) are willing to sign a 5 year lease. 

The numbers and the ability to participate in a highly underserved segment of the market with Sect 8 and Vouchers made sense.

Typically 6% for bare bones permit set and you will have to find the contractor plus project manage it through construction.

Basic services like garbage collection don’t qualify.Material participation: Owners must pass one of the seven material participation tests, such as:You spend more than 500 hours working in your short-term rental business.You carry out all the necessary tasks to run the business yourself.You work more than 100 hours in the business, and no one else contributes more time than you do (this is often considered the best and easiest test to meet).

My experience is: if you have a rental that you clearly are putting in the bare minimum to get it rented: cheap carpet, quick coat of paint, cheap light fixtures, repaint cabinets, etc, in these lower income, higher crime areas two things will happen.  

I have included a slide on cost segregation analysis and how our interior design work can help to support with the owner's material participation hours and furnishing, upgrades to the property, including landscaping can all factor into that analysis.