One insurance, one property tax, diversify vacancies (50% if one unit is vacant versus 100% for a single family).3.

Factor in ALL expenses like property taxes, insurance, repairs, maintenance, vacancy rates, and potential property management fees.2.

Hi All,I am looking to get input from people who file their tax return using the Professional Real Estate Status.

Only 3 cases exist that I know of of individuals successfully defending themselves before the tax court of qualifying for real estate professional status while having a full time job.  

And the good news is they go away in the future against higher taxes and tax rates.

He claimed that transferring ownership to LLCs would trigger transfer taxes which also justified why I needed land trusts.

From a tax perspective...

What is your tax position?  

High appreciation markets have higher rent growth.  2) prop 13 basically means property tax increases will be small (2%) regardless of the appreciation or rent growth. 

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).