Find out the average lease time for your market and for the person asking you to sign.

Forget the money you put in and sit down and figure out the latest expenses and where you'd be if you sold vs if you fixed it. 

Quote from @Carlos Ptriawan: Quote from @Chris Huang: Maybe so but SF is so expensive for a beginner though.  5+ Unit Multifamily can be tough right now.

Purchase price: $61,000 Cash invested: $60,000 Sale price: $191,000 The biggest expense of this property was the nine 20 yard dumpsters, yes nine!

Let's break down the pros and cons of each approach:Forming an LLC in the State Where the Property is Located:Pros:Compliance with Local Laws: Establishing an LLC in the state where the property is situated ensures compliance with local regulations and laws specific to that jurisdiction.Legal Clarity: It provides clear legal jurisdiction and may simplify any legal proceedings related to the property in that state.Perception: Operating with a local LLC may give tenants and local authorities confidence in your commitment to the community.Cons:Additional Costs: Setting up and maintaining an LLC in another state means incurring additional registration fees, taxes, and possibly hiring local legal counsel.Administrative Burden: Managing multiple LLCs across different states adds complexity to your administrative workload, including extra paperwork and compliance requirements.Tax Implications: You may face tax obligations in both the state where the property is located and your home state, potentially leading to double taxation or complexities in tax filings.Managing Through Home State LLC:Pros:Simplified Management: Handling all properties under a single LLC streamlines administrative tasks, reducing paperwork and simplifying tax filings.Cost Savings: Avoiding the need to establish multiple LLCs in different states saves on registration fees, legal expenses, and ongoing maintenance costs.Consistency: Uniformity in management practices and legal structures may contribute to efficiency and ease of operation across your real estate portfolio.Cons:Legal Exposure: Operating out-of-state properties under a home state LLC may expose your personal assets to the laws and liabilities of the other state, potentially diminishing the liability protection the LLC offers.Compliance Challenges: You'll need to ensure your home state LLC meets the legal requirements for conducting business in other states, which could involve additional filings and fees.Perception and Credibility: Some tenants or local stakeholders may prefer dealing with a landlord who has a local presence, which could impact your reputation or relationships in the community.Ultimately, the decision depends on your specific circumstances, risk tolerance, and long-term goals.

I had a property in Cleveland (Warrensville Heights) for 4 years and yes, I had to pay for the water/sewer (but not snow plow) and it was in my name, as the utility company billed me directly.But, I had that expense factored into the rent, so I was reimbursed when the rent was paid.

Maybe Greg only processes 4-5 applications a year and doesn't mind the expense.

Basically I just average out the nightly rate to what I want to get every month

I just purchased a 4-plex for 550,000$ cash flow after all expenses is 700$/month.

If it's a short term rental with an average stay of 7 days or less, and you materially participate, it is non-passive income, but it still goes on Schedule E.