.✅ Calculate potential profit/loss using this simple formula:📊 (Monthly Rent - Total Monthly Expenses) = Net Rental Income3.

But here are ways to reduce capital gains taxes:Deduct expenses (renovation, selling costs) in 2024 to offset gains.Hold for 1+ year to qualify for lower long-term capital gains tax rates.Invest in a Qualified Opportunity Fund (QOF) to defer taxes.Use tax-loss harvesting to offset gains with investment losses.Pushing 2024 deductions to 2025 won’t help much with 2024 capital gains.

.❌ Not All Property Managers Are Great – A bad property manager can neglect your property, overcharge for repairs, or poorly handle tenant relations, leading to unnecessary headaches.Which Option Is Right for You?

My takeaway was never to tell the insurance about a loss unless you actually do have a loss.  

Set aside a big pile of cash or rely on a line of credit you won't be using.The oversimplified insurance concept is to pay a small premium to cover a large loss.

Listing them as an “Additional Insured” rather than just an “Additional Interest” will also safeguard both parties.For the LTR unit, your landlord policy should include property damage, at least $500K in liability, and loss of rental income.

There’s no real way to create phantom losses without running into issues with the IRS, and you could end up losing important tax benefits.

Insurance deductible is $5k and I was not planning on filing until I found out about the total loss of the wood floors.  

Because we are vertically integrated, we can streamline operations and avoid many unnecessary costs, ultimately saving our clients money.Another crucial factor to consider is the experience and investment mindset of your PM team.

So a loss of about 55k We did a lease to own option so I could immediately take over expenses but keep their primary resident loan and interest rate.We agreed to a deal which would cover all their expenses at closing, their remaining loan balance, and $45,000.