I am from out of state so wanted less maintenance in the short term while I build my portfolio and grow to the point where I am comfortable hiring a manager!   

This exemption is particularly beneficial for real estate investors, homeowners, and businesses looking to manage their tax obligations more effectively.How Does the ATI Exemption Work?

One reason was the condo management company wasn't doing a great job and there were always extra levies. 

Investing in a property that’s already renovated, rented, and professionally managed could allow you to start generating passive income immediately without the added expenses of house hacking.What’s most important for you in this first deal—cash flow, appreciation, or long-term stability?

There are also online platforms that will handle managing security deposit compliance, refunds, etc. like rentable.com

But yes we do bifurcate our portfolio and manage it to make sure it’s well balanced as well and not teetering too far one way or the other.Chris, I never knew about SEC audit.

I do have some investment experience and I'm currently managing 1 property, all the numbers are great and there's a good amount of cash flow and long term growth so I'm not a total green horn. 

Unemployment was high but I had savings and managed to find work.

Anthony Klemm, cost is just one component.  

As the owner of a property management company in Washington, I have encountered this situation before.