You need a reserve to handle unexpected costs, particularly during the first 1-2 years of ownership and learning how to manage the property. 

Today it has good cash flow (~$6k/month using 49% expense ratio) and is up ~$1m above costs.  

the value added versus cost to add, especially in single family zoned areas, typically results in a large negative initial position.  

If you plan to hold do a Cost segregation if you want cash now.  

A revocable living trust is another option for privacy and asset protection.Avoid gifting the property before death, as this would pass the original purchase price as the cost basis, creating a large capital gains tax liability upon sale.If the property is Subject A’s homestead, ensure the correct titling to maintain Florida’s homestead protection for Subject B.This post does not create a CPA-Client relationship.

You can either put the portfolio into one LLC or create two LLCs, one for each property.Getting a good SEC attorney is more important than the cost. 

Sunk costs fallacy and all...Appreciate your candor, in any case

Renting to Section 8 Long-Term TenantPurchase Price = $250,000Renovation Cost =$3,800Appraised Value = $270,000Monthly Rental To Section 8 Tenant = $2,800Monthly Mortgage Payment = $2,100Monthly Reserve for Maintenance and CapEx = $200Monthly Cash-flow = $500Another investment property was closed and added to my rental portfolio.

Underestimating rehab costs - get a contractor bid.5.

Lost $3k in the initial cost.