@Shay Sherbotseli The tax a withholding on the gross sale price of the home.

Total PITI : $2,800 p/m ADU: Rents : $1900 p/m Home : would rent for $3k per month Potential Gross cash flow: $2,100 per month Purchase: $500k Current ARV: $900k Can these numbers be achieved today with high interest rates and high prices ? 

>90% - invest $70k to gross $100k for $30k pt net. 

The Property Management company collected the gross rent and then disbursed to me the net rent after expenses and fee is paid.

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

The buyer bought it for $20k so the gross profit for each lot was $1k, we wholesaled two of them.

Each secondary room (4) is $850/mo and the primary room is $1,050/mo totaling in $4,450 in gross rents.

I've personally (built) owned, sold and operated everything from a $125k studio shack that grossed $3500/month to a $1.5M oceanfront generating $165k/year.

Because they aren't onsite and able to assist a guest at any time, they typically charge a cheaper fee of 10-20% gross profit.

You are right that some section 8 tenants may not take care of the property...but I have had both non-section 8 and section 8 tenants and I think sometimes those are just gross generalizations.