@Matthew RolfI’m not doing a crash pad I’m house hacking a 5 bedroom house which I will live in here in a few weeks and rent the bedrooms on 1 year leases to pilots and flight attendants I’m personally friends with.

Hi AJ, This is a big obstacle for many buyers in todays market when competing with cash offers. 

One time I placed a lease in her mailbox and she gave me the run around and never signed it.

New developments come with inherent risks.

Make sure you have a backup plan (contingencies) for if/when obstacles arise and you’re required to spend more money and possible more time (3-6 months) to the overall project. 

I do have some tenants that pay late, in fact I had a tenant just drop off rent yesterday with the late fee included in her money order. 

They do not realize the impact of the last recession is an obstacle in the future one, but they are not parallel.  

I often tell them exactly how I make money bc I run a business where inherently, being in business means making a profit.  

It's not worth the risk that they leave as there's some inherent cost of vacancy, getting it rent-ready, changing the locks, etc.  

This may inherently allow an allowable offset of PAL, when ordinarily the cost seg depreciation would be subject to some possible suspensions.