*Of course, sometimes you have to see a little humor in things to make the ordinary challenges of the rental business a little less frustrating.

So let's start with the basics. 70% will fail25 % will have decent results3 % will have success2% will succeed at an extra ordinary levelA lot of investors invest for quick profits or appreciation.

Rental income is not treated as a capital gain, it's taxed as ordinary income.  

Remember, any money made flipping properties is taxed as ordinary income and there is NO future income.  

In the end you both pay a lot of closing costs and split the profits at high ordinary income tax rates. 

But the real problem is an ordinary FHA loan (not 203K) will require the house to be in too good of condition to make a good starting point for a fix and flip.  

I'm charging them for new pantry doors that they took off the hinges, the closet door because it's broken, the installation of the lights that they removed, a fan they took with them, the side locks of the patio they removed... some switch covers they removed... a new front door they were supposed to install because a firefighter had to pry open because her mom fell and could not get up...

You're misinterpreting that part.I also am not understanding why your real estate LLC can't buy the ordinary and necessary equipment needed to maintain the properties and take the write off. 

There is also principal pay down, potential appreciation, conversion of ordinary income to long term capital gains on sale.

Your request is above and beyond the ordinary day-to-day management of the property so it's reasonable that you compensate the manager for that additional time.