When an owner replaces or retires certain items (e.g., lighting, HVAC, or carpeting), they can claim a deduction for the remaining undepreciated value of those items.

Cash flow is great when your houses are paid off and you're ready to retire.

3) Average income was up 4.5% in 2024.

And this low demand could be a couple of factors, either a rural location with low population density or the area incomes are not high enough in order to prevent a rent burdened scenario. 

Perhaps they want long term income for their retirement and ultimately their heirs.

If you are sole member LLC you just take a distribution from your business account to your personal account.You are likely already reporting the income on a schedule E.

It sounds like you’ve been doing some serious groundwork with all the reading and research, which is such a strong start to your journey toward FI and retiring by 55.It’s awesome that you’re exploring real estate as an option, even if you’re not completely sold on being a landlord yet.

Definitely don’t cash out your retirement funds.

She read 2 books, "Retire with Real Estate" and "Set for Life".

I am 59 years old, and my retirement fund is all in my 401k.