Hi BiggerPockets Peeps,I recently sent my previous tenant his deposit back after deducting a substantial amount for damage, repairs, and an excessive amount of cleaning the house needed.

Low and behold, I find a house that shows signs of vacancy (very tall grass, excessive mail in the mailbox, etc.)

That seems excessive.

Those 2020-2021 speculative buyers seem to have guessed right, and the excess inventory normally making it's way to the first time homebuyer likely ended up in someone else's portfolio. 

But if your expenses are driven by true estimates, historical trends that align with current conditions, and actual numbers based on your insurance quotes and real estate taxes due based on your purchase price, than I would venture that 58% is pretty accurate.If you are making a lot of assumptions vastly in excess of historical expenses or building an "extra large" buffer of reserves, then maybe you are being overly conservative.  

Some of them are obvious needs (broken windows, moisture, etc).  

I'm looking for guidance on how to strategically do this.Since we have contributed $300k to the LLC, and it far in excess of what I am taking out, wouldn't the distributions only reduce our basis in the LLC and have no tax impact on me? 

Right now, the biggest hold up for leveraged transactions - interest rates in excess of cap rates.

As long as it's not excessive, I think your tenants will understand.

Otherwise grease and moisture will screw up the walls.