The conservative method would be to take the square feet or # of rooms that only your buddy uses and divide that by the total square feet or # of rooms to come up with the rental % of your house...it's up to you to determine what method you think is reasonable, but the IRS can challenge it, taking into account the fact that you also use some of the same rooms as your tenants.The landscaping business is fine...you can just write off a portion of your house for the office and garage as long as those rooms are 100% business...no need for the rent.  

The pigtail method is what I've used to remediate in the past as well.

There are many other methods and opinions, this is just mine.

Hello @Art Herbert ,Can you please break down that method a little further?

Hello,New here and also new to investing and rental properties, and was wondering if the BRRRR method works in the Canadian markets at all?

Yellow Letters are next on my list but I'm still trying to get a grasp on this method as of where to target and how that effects my response rate, hand written letters or using a yellow letter provider, and who someone would recommend, etc.

I'm not saying purchase their management products, unless you want to, but check out the pill method or replace your mortgage on youtube). 

Depending on how I do with this method, I am open to flipping in the future.

This method is called wholesaling and it does not require any money nd it is something that you can do right now.

I would love to be able to use the BRRRR method to get started because I do not have any money for down payments, rehab, etc.