It’s true that you can have a 10 percent down and have it classify as investment property for tax purposes as long as you can meet the irs definition of investment property while also meeting your lenders occupancy requirement. 

This all hinges on what you call a "rental property" is actually NOT a rental property in the tax code! 

This allows me to get into a great property and leave the bank out. 

I've never done it, but it's my understanding that not all lenders offer financing for properties held by an LLC.

I have downloaded all of the other forms mentioned in the book Managing Rental Properties but can't locate the flow chart poster for the tenant screening process.

He ignored these requirements and he went straight to the County with the same paperwork and the county approved the subdivision; therefore he was able to sell 5 of the 6 properties to different investors.

Just be sure to select a reliable property manager that aligns with your expectations

Update your insurance.If they do, inform your insurance company about the change in your property's use.

Section 179 of the Internal Revenue Code allows businesses to deduct the full purchase price of qualifying equipment and software up to an annual limit.In 2024, for example, taxpayers can expense up to $1,220,000 of qualified assets.This election can apply to many types of tangible personal property, such as machinery, equipment, and off-the-shelf software, which are used predominantly in your business.Limits on Section 179 ExpensingAs attractive as Section 179 may seem, there are limits.For tax year 2024, the maximum investment limit is set at $3,050,000.If your business places more than this amount in service, the amount you can expense is reduced dollar-for-dollar over this threshold.In addition to the dollar and investment limits, the amount of your Section 179 deduction cannot exceed your taxable business income for the year.This means that even if your business invests heavily in qualified property, the deduction could be limited by the business’s profitability.Also, not all property qualifies for Section 179.Real property, like buildings and structural components, generally does not qualify unless it is "qualified improvement property."

While I could sell both properties and turn a large profit, avoiding ongoing maintenance and property taxes, I’m also interested in holding on to both properties as long-term investments.I’ve thought about possibly doing a full demo and rebuilding a custom home in Carlsbad for personal use or to sell down the line for a significant profit.