There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

I own the property free and clear and i use the equity as part of my business line of credit.

Here's an article with additional FAQs on cost segregation studies that you may find helpful.

Additionally, it's easy for a house on one lease to get absolutely trashed by the renter.

Thank you Eric.In addition to the rental properties, my wife and I have a paid off house, paid off car, and about $1.4m in retirement accounts, brokerages, and savings.We live in a HCOL area and our expenses are $9.5k per month even though we live pretty modestly.I set out initially to have real estate pay for at least some of my expenses in order to give me more freedom and financial security.Is your wife quitting too? 

Check credit, income, and rental history.

Use a home equity loan (fixed debt) instead of a HELOC (variable equity) and build an additional unit you can rent out in your own backyard.

In addition to being a lender, I am an investor as well so if you want to give me a call so we can discuss your numbers, I'd love to help you out!

From our experience with clients, you’d typically expect to pay around $1,000–$1,500 for a single-property return, depending on your situation.If that $6K includes monthly bookkeeping and accounting, it could be reasonable; it could also be low, or high... it all really depends on the number of transactions, bank/credit card accounts, and the complexity of your finances.

Additionally, if your goal is to maximize personal financial benefits, consider profit distributions from the property-owning LLC, which may provide tax flexibility depending on your situation.By adhering to FMV, maintaining proper documentation, and structuring the lease agreement carefully, you can optimize tax benefits while staying compliant.This post does not create a CPA-Client relationship.