Take into account livable square footage and lot square footage for comps and don't leave out your fixed/holding costs when running numbers.

The same enrolled agent also suggests that opening a 'property management' business should allow the deduction of the overhead 'cleanly', but frankly creating a Sch C business with only overhead expenses to support Sch E activities seems to be 1) a HUGE RED FLAG as there is NO INCOME to the business created, and only expenses incurred over SCH E activities only. 

Hey - the red flag right away is that the listing appears to confuse effective rents with net operating income.  

Initially upon looking into the property we came across a lot of red flags for the crime rate in the area.Does anyone on here have experience renting in New Haven and can they offer advice for newbies like myself?

1,508 square foot 3 bedroom, 2 bathroom single family home on an 8,400 square foot lot in Sunland, CA, in need of $5,900 in minor cosmetic work.There is a 400 square foot detached garage in the back that can be converted into a 500 square foot additional unit equipped with a kitchen, bathroom, bedroom, and living space after rehab. 

When you get a utility bill, the owner pays it and then bills back the tenant based on square footage.

So if I have an area that is very dense with run down houses than im mailing to, Im going to make sure i cover every square inch of that area.

Is there a formula for calculating repair cost via square footage of a house?

I also take in consideration the square footage around the community and the rent.

If both units are the same square footage and about the same in other ways, I'd raise the rent to $650 on each unit.