We try to do a walk-through with the new tenant at some point to show them emergency shut off locations, instructions on filter changes, etc. so I wouldn't recommend just dropping keys off and that's it, but I have had probably 2 or 3 tenants over the years that I never met, just talked to by e-mail or text.  

Just need to find a property that has large enough of a lot to fit the added unit.Design / permitting / AHJI think I will budget a year for design and permits / SDG&E coordination / city water etc.

Do you perhaps know where the checkbox for passive vs nonpassive is on Schedule E?

Or best action steps.1206 Bishop $82k / Release Price $79,8001710 Collins $89k / Release Price $78,9601215 Bishop $89k / Release Price $79,8001217 Bishop $99k / Release Price $131, 8802409 Pennsylvania $99k / Release Price $100,800604 E 1 st. $85k / Payoff $45,000

If 10% per your example, maybe not since doing nothing would get me close to 4%.d/e.  

Overall, he seems to want to do a basic cost seg for me on the FF&E and Capital Improvements and leave the original basis of the property on the conventional depreciation schedule.I would love some feedback, personal experience, thoughts on this matter.

Quote from @Scott E.: Goal: Don't go bankrupt.Joking, kind of.

Quote from @Victoria E.: I have a tenant who has moved out and  i now have a judgement against. 

Annually, the Management LLC would "distribute" to the Property LLCs, but it would all flow thru to your 1040 Schedule E - unless you get partners, which would require a 1065 return with K-1 distributions to the partners.

SCHEDULE ESchedule E is the SEXIEST Schedule to investors (that's right, I used sexy to describe tax returns).