With my LTRs I have been switching to all tenant paid utilities after my first winter where I discovered the majority of my tenants were setting the heat at 78 (which is unreasonable in Northern New Hampshire) and leaving their windows open in -20 degree weather.

Quote from @Bob Dole: All,Apologies for the newb question, but I just heard about cost segregation and have been reading up about it online.My understanding is this (and please correct me where I'm wrong):Pros: -accelerate depreciation, front load (vs. just a straight line over 39 years) -save money on taxes because of the depreciationCons: -if I sell the property, the recapture will be larger -not recommended if you flip propertiesSo hypothetical situation:-Majority of our income is W2 based, let's say it's $500k-Net income from commercial rental is $100k-Income from dividends and interests is $100k-Both of us are full time W2, so non-prof real estate (but this can change  -- please see below)So we're hypothetically grossing $700k a year. 

Having developed a majority of my career in CA the regulations and red tape for construction and development are intense. 

Either they overpay or don't negotiate the right terms, or miss something major. 

If you are still a majority or controlling partner you will get no pushback. 

Besides frozen pipes in the winter, there's also sump pumps that if not running, could flood a basement and cause major mold damage. 

Did you keep some coverage in case of major lawsuits? 

,While no investment is completely passive, proper real estate investing should be relatively boring.You asked about the process and major considerations.

We did major renovations and repairs on both units for about 40k total and were able to get rents up to $1250.

I am guessing that the vast majority of homes 10+ years old had some sort of water damage at some point, most had probably several.My own home is only a few years old and we had the washer spring a leak and a few years later the RO system in the kitchen started leaking into the cabinet.Seller disclosures are pretty useless in my opinion.