So, ensure you have super powerful incentives from an REI-savvy attorney and an REI-savvy tax advisor prior to making this move.Some of our Clients have implemented this in the past (prior to working with us) and their businesses weren't large enough to justify the complications that come with this type of structure.Hope that help!

Coincidentally, I just listened to episode 3690 on Next Level CRE: Power of Mindset today. 

You suffer large unexpected expenses.

If a property management company faces a data breach, it can significantly reduce the property’s value, impact lease renewals, and affect the attractiveness of future investments.PropTech Startups:The surge in PropTech (property technology) startups has brought innovation to the real estate sector, including platforms for digital transactions, property management, and AI-powered real estate analytics.

My first DSCR loan experience was unexpected. 

The real problem comes in when the unexpected happens, like a roof repair, or a boiler replacement, on top of the negative cash flow.If it was me, I would try to save more, take out less debt, to help with cash flow.

We’ve already extended a $2.9M interest-free short-term loan to cover various unexpected expenses, including the replacement rate cap over the past 12 months.

Particularly in winter  All I know is we have never had a complaint about temperature.240VAC powered tubs heat up pretty quick.

No telling what issues this could have caused if I didn’t know they moved out and there was no power to the home for a month.

This will increase the return above what can be obtained on a passive investment.The flipside of having the power to control everything is that it can be alot of work (and a full-time job if a person is putting in sweat equity).