Those are the cost of doing business.I will use my clients property, purchased last year as an example:(57,000+6228-3500)/$190,000=31% IRRMy client lost money throughout the year(repairs, vacancies, etc) and had an 8.1% interest rate.All this to say if you can stomach a few down or flat year, you will make a killing!

But you will never see the appreciation that truly builds wealth, because those low-barrier-to-entry properties will stay flat on the metric that matters: appreciation. 

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

Hi- I have a 3 flat that is not within the ADU zone.

Another option would be to sell, reinvest into a house hack and use the excess on a deal.

.✔️ You’d rather pay for peace of mind and legal compliance.Final ThoughtsIf you’re house hacking a small multi-unit (like a 2- or 3-flat) and are comfortable being hands-on, self-managing can be a great way to save money and learn the business.

The more common one is a flat value for the ADU, like they would for a pool or another bonus.

The Only other deductions that I have right now are $154 for unpaid water bill, and $45 for the minor repairs mentioned (doorbell, blinds, shower).Questions for the group:Does $540 seem excessive for a cleaning charge, given the situation?

market rent increases has been very small in my sub markets (I suspect near flat metro wide).Ideally the property appreciates and historically it is true.  

A possible solution could be to hire a handyman to cut out the section of drywall that has been water damaged and use a moisture meter to see if there is excessive moisture in the wood and other parts of the drywall.