I believe that the cost of loosing rent from an eviction or cost of a torn relationship that would build spite could result in a worse situation.

Is real estate there really like the show Santa Clarita Diet...LOL...They are all Realtors...Try house hacking on your first investment, it's a great way to get started and build relationships with people in the business. 

Looks like the cost of preserving a good relationship with the tenant will make you more money than what you've spent on this repair.

Leverage REP status to use other losses against capital gains in the liquid assets of the company (invested in EFT's, etc)The policy for loss distribution would be:-All must be active (preferably material) participants to get deductions; hence the 20 or fewer so relationships can be maintained-Non-REP's can take up to $25k/y as PAL.

I have good relationships with both of them/ there is mutual respect.

@Rachan Malhotra I think you attached the Florida only list, lol...what is the relationship between fast growth a doing well as a housing provider...aka "real estate investor"Every city in America is facing an affordable housing crisis right now despite the market flooded with federal dollars and more programs than you can count...quite frankly, you can do well almost anywhere.

Even now you should be starting your business relationship with your future tenats.

I love the work, and I love helping people and creating mutually rewarding relationships with clients. 

It is also my belief that many investors do not understand the various investment options that exist and the associated returns especially the risk/return and the passive/return relationships. 

The advantages here are that we know the area very well and we save on the management fee which is huge.On the other side, I'm sure many of these types of 'bright ideas' get in the middle of personal relationships.