Have a plan for marketing, operating expenses, and scaling without overleveraging.

This can be very expensive and is usually the worst choice because you can't justify the cost.2.

As already mentioned, you could sell via seller financing to lower AGI, as all you would have to claim is the payment income - until balloon payment received.Did know an investor that had 14 properties paid off and he moved into one every two years to then sell with the $250k single exemption.

However, they approach financial health from different angles.The 50% Rule is a quick estimate that suggests operating expenses (excluding mortgage principal and interest) will roughly equal 50% of the property's gross income.The DSCR is a more precise calculation (Net Operating Income / Total Debt Service) that determines if a property generates enough income to cover its debt obligations.Deal example:- Class C middle class neighborhood- 4bd / 2ba single family house- ARV: 190k- Purchase: 105k- Rehab: 35k- Market rent: $1,400-1,525- Section 8: $1,475- Property manager: 10%- Taxes: 125 month- Insurance $1250 yr- HOA: $55 month- purchased and rehabbed with all cash.

If HOA by laws state past due owners are responsible for all late fees and legal expenses for collection hire an attorney to go after the past due. 

If I were you I would get a good flavor from the tenants how they interacted with the previous owner, essentially, how they paid, how did they make repair/maintenance requests, when/why did the communicate with the owner, etc...

From Land Guy " Landvision to make lists, but it's expensive (3800 per year, but you get unlimited data).

While you certainly need the cash flow to cover expenses solidly, sacrificing a little to buy in an area with higher values may end up being a better long term play... likely to have less turnover, higher tenant demand, better appreciation from owner occupants driving prices up, etc.All the best!

Just because your guest paid one price a year or two ago doesn't mean you haven't had higher expenses or more traction in bookings to add to demand.  

I was surpriesed to see that trash removal is $20k per month, but ti's a recoverable operating expense so maybe I shouldn't care.