There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

. $1200 at 1.5 months vacant will yield a greater annual EGI ($12,600) than $1350 with 3 months vacant ($12,150).

At annual rent increases, I do scour Zillow for market rents in the area, which I share with my tenants.

You’ll typically find professionals or higher-income renters in these neighborhoods, so it can make a big difference when it comes to peace of mind and property maintenance.

Get listed on all the OTA’s and a direct booking site, use good management software like HostAway, use dynamic pricing software like pricelabs, use WiFi enabled smart locks like Schlage encode, use an email capture system for guests to login to WiFi like stayfi, use those captured emails to do marketing for your direct booking site, and automate scheduling and payments for cleaners and maintenance.

You have the mortgage, taxes, insurance, maintenance, capital expenditures (roof, flooring, etc.), and also need to consider the cost of vacancies or bad tenants.I also recommend you charge market rate, for yourself and the tenant.

I know if I were to send an operating agreement to a lender that reads "LP member will receive return of their capital and 20% annualized return" they would not approve the loan.

Also, consider this copy & paste advice below:Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

Again, they try to leverage the majority the landlord is getting, so they don't have to pay their portion.6) We get the most maintenance requests from S8 tenants.

Plus you'll want reserves for maintenance and vacancies.Have you checked what you can actually get approved for?