That was something I wasnt prepared for when i first got started. 

If you are reporting it on a schedule E (you are not taxed as a corporation or as a partnership in non-community property states) then no, there is nowhere on your tax return that shows your cost basis and your tax preparer likely doesn't know. 

Be prepared to followup numerous times.Highly likely the owner will treat your letter like junk mail.

Preparing to list rental after completing lengthy rehab. 

Prior-year losses can’t offset W-2 income but can be used for capital gains or future rental income.For audit risk, high earners using REPS face increased scrutiny, so be prepared with detailed records.For material participation, keep a time log with tasks, dates, and hours spent on rental activities like tenant management, repairs, and bookkeeping.

I recommend he look for a property manager who can figure this out and stop the bleeding, then maybe take over management in a year or two when he's better prepared.

Natural to be nervous, but you need to embrace that.If location is truly great, learn to optimize the cash flow or be prepared to weather a minor cash flow storm.

The more you know, the more prepared you’ll be.2.Find Your Strategy: Real estate offers multiple paths—flipping homes, building rental portfolios, commercial investing, etc.

Navigating regulations and managing properties can be complex, but with the right preparation, you can find success in this dynamic landscape.Also, Colorado is such a beautiful state that it would be a shame for you to move out of it!

So yes, to answer your question, I’m well prepared for whatever I get myself involved in.