The way I was explained it was your net operating income minus depreciation yields your net income and you pay tax on that.

I would focus on abandonment.

If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee.

I’m in the process of searching for land in the Houston area to then build a 4-plex on it.The plan is to self-fund the purchase & construction, rent the units and cash out with a mortage.I like the idea of serving lower income families and therefore don’t shy away from section 8.This is the first time I do something like this, so I’m throwing it out there in hopes of hearing your thoughts and learning from your experience!

Good points on weighing the trade-offs between smaller towns and larger metros.

Thank you for shedding a ton of light on it for me. 

With your past experience and a clear goal of building a portfolio in Houston, you’re already well on your way.

Yes, I do it virtually on zoom.

On my first deal, I created an entity for that property.

Do you rely on specific data sources, gut instincts, or perhaps a blend of both?