Would a reasonable 8% of rental income as a property management fee be something that could qualify as self-employment activity, allocated separately from the overall rental income?

But the depreciation was in my corporate return and they were too stupid to just go to the individual property schedules and add up the depreciation that was allocated to each house.It was the dumbest thing I've ever seen.The kicker was they did it on the first one and had no problem.

We get allocated funds through different programs that we use to assist each client.... when it comes to sub2 agreements, we just link the homeowner to an interested party and make sure all the necessary paperwork is completed.

I would never suggest anyone to put themselves in a cash strapped position to get a deal closed regardless of what kind of deal it is you must have adequate reserves and less stress with coming up with cash that you had already allocated to something else until the lender changed guidelines on you at the last minute..

So, I apply more of the payments to the value of the equipment than to the RE until that amount is reduced, then I allocate more to the RE portion.

It's also smart not to allocate the income from the sale of homes toward a debt payment. 

@Mike Wood  on the west coast you can throw % of project allocated to the land right out the window.. its inverse in many areas.For instance I paid 750k for a lot in Palo Alto 6 sq ft tear down in Barron Park  and spent 400k building the home.

In joint ventures, I typically allocate 75-80% of the returns to equity and the rest to the active manager(s).Here's our typical setup:- LLC ownership is determined by equity- The LLC operating agreement includes a waterfall such as:* First, return of capital* Second, 80% by ownership (pro rata) and 20% to managers

Under the above PASSIVE investing plan, the investor can have accurate allocations from rents going into the various deferred maintenance accounts, and putting accrued profits back into the business compounding the power and affects of the annual active contributions.

I have the time and the energy to allocate to purchasing my first investment property, but I am struggling to figure out where to go from here.