Although the $55,000 renovation went as planned, dealing with unforeseen issues, such as older plumbing, required adjustments.

Although the $55,000 renovation went as planned, dealing with unforeseen issues, such as older plumbing, required adjustments.

What I like about the BP calculator is that you can easily adjust the number to see where the variables need to be to break even. 

At the same time it would be great if the tenant I'll ask to vacate moved out earlier.My plan is to have face to face conversations about this and follow up with certified mail / official paperwork.

Now, when were asking them last month rent they are saying adjust from deposit.

Basically, you should treat an MTR lease just like a LTR lease, with some small adjustments because you are providing utilities and furniture.Another side of your question ("anything important I should include when contracting with business?") 

Key Principles:Mindset and Goals:Think Long-Term: Real estate is a long term play in most cases Set Clear Goals: Define your financial goals and how real estate fits into your overall plan.Finding the Right Property:Location, Location, Location: Invest in areas with strong economic fundamentals, good schools, and low crime rates.Cash Flow is King: Look for properties that generate positive cash flow (rental income exceeds expenses).Consider Appreciation: While cash flow is primary, also consider properties in areas with potential for long-term appreciation.Financing:Get Pre-Approved: Get pre-approved for a mortgage before you start looking at properties.Leverage Wisely: Use leverage (debt) to your advantage, but don't overextend yourself.Consider Creative Financing: Explore options like seller financing or partnerships.Building Your Team:Real Estate Agent: Find an experienced agent who specializes in investment properties.Property Manager: Consider hiring a property manager to handle day-to-day operations.Accountant: An accountant can help you with tax planning and financial management.Attorney: Consult an attorney for legal advice and contract reviews.Managing Your Investment:Maintain the Property: Keep your property in good condition to attract and retain quality tenants.Screen Tenants Carefully: Conduct thorough background checks on potential tenants.Review Your Finances Regularly: Track your income and expenses and make adjustments as needed.Example Action Steps:Set Your Goals: Define your financial goals and how real estate will help you achieve them.Educate Yourself: Read books and articles about real estate investing.

When you convert to a rental, the basis for depreciation becomes the lesser of the fair market value or adjusted basis on the date of conversion.

A great resource is www.ascsp.org, where you can find certified firms.

The house would be considered a capital asset, so to be conservative, I would estimate 20% of the gain for tax, plus an additional 3.8% for the net investment income tax if your total adjusted gross income (worldwide) is over 250k.