You need to know your market, occupancy and competitive rent rates, renter expectations, your goals, risk tolerance, temperament, and your resources.You need to know your local tax rates, state/local landlord rules, housing authorities, insurance sources, financing options, occupancy and employment trends.There are crazy tenants but effective management can minimize the risks.Good luck.

Water at 125 per building sounds very cheap and understated.I can tell you when the landlord pays the water bill tenants take LONG showers,do not report leaks (running commodes,bathtubs dripping,washer leaks,etc.) and they let others was cars and use their washer dryer for clothes.125 by 4 is 31.25 a unit for water each month.I would demand the actual water bills for proof for the past year.If it's built in 1971 what about the lead based paint EPA renovation rules??

Ebere,I must distinctly disagree with you as IRS rules and regulations state that all expenses in preparing the property for rental activity(defined as listing for rent or actually renting which ever comes first) are added to basis.He inherited the tenants when he filed for the deed of a home in which as he stated the intent was to flip.

There is no statute being broken, so next time anyone tells you something is illegal demand they provide the statute or stuff it.However the lender has rules and without them co-operating your not going anywhere.

The way I understand the rules, you must be already active in real estate investing before taking the classes in order for it to be a deductible expense.

Does this rule apply when a roommate breaks the lease and moves out but the other roommates are still living there?

Sometimes it's their rules because it's their contract.

I was extremely naive about my numbers (hadn't yet heard of the 50% rule) and put loans on most of my properties.

You should read up on the 50% rule and the 2% rule here on BP for starters.

Next, you must keep records of repairs that indicate odometer readings as in an audit the IRS WILL ask for them.If you have a home office, the rules are strict.