Yet you still haven't answered my original question.

Also, per their numbers they are buying for 37 mil, debt 24 mil, equity 20 mil, 44mil minus 37 price = 7 million in closing costs, which is 35% of the total equity, RE commissions of say 4% total 1.5 mil so they are taking 5.5 million in fees up front as well minus the inspections/loan fees etc.

The idea is that tenants can pay Zillow or any other online site taking applications and then not have to pay an application fee for each property they want to apply to.

I can see that Lizz has included a leasing fee in the property analysis docs she provided, which I assume reflects the lease only service you mention.

As the original poster said obviously there's limitations to passive losses or depreciation etc. to only offset passive income. 

Since you're speaking to a 50k impact fee, that sounds like you're on the west coast.

It's a mountain town, essentially, mostly full of second home vacation owners.The restrictions were created by the original parent parcel owners before they subdivided it all.

Just don't get stuck with lots of fees typically associated with 401k's mutual funds and some insurance products.

Hello, I just recently purchase my second home as a primary and making my original primary home into a rental property.

The original insurances are covering the original purchase price of the properties, which are 25% of the worth in this day and age.