Additionally, the property includes an outdoor swimming pool.The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

Here are a few strategies that might help:- Leverage Industry Benchmarks: Many investors use a percentage of gross rental income as a quick estimate for operating expenses.

Otherwise, it’s treated as a partnership requiring Form 1065.Get an EIN (Employer Identification Number) from the IRS (free) for tax and banking purposes.Separate personal and business finances by opening an LLC bank account and keeping rental income/expenses distinct.Consider an operating agreement, even if not required by state law, to define ownership and responsibilities.Liability protection: An LLC helps shield personal assets, but you may still need landlord insurance and an umbrella policy to cover lawsuits and unexpected claims.Tax strategy: Rental income typically passes through to your personal return (Schedule E).

If you need further help, DM me and I’ll point you in the right direction!

BiggerPockets is full of resources designed to help you along your journey, whether you are just getting started or a seasoned investor.

Partners can help but often have different needs/motivations than you.

I would connect with an experienced loan broker who can help evaluate these options for you.

I am guessing only you would be signing the 18 month lease and this individual who is there to "help" won't be voluntarily offering their signature as a co-signer?

My list is in the 1,000s.sorry for the 20 questions, you’ve been super helpful! 

Weighing the long-term appreciation potential of California against the stronger cash flow of other states will help determine the best strategy for you.Good luck!