Net Operating Income / Property Cost = Capitalization Rate

What if it sits vacant for a month, and you lose the entire $3,500 rent income plus the cost of utilities, lawn mowing, and other expenses?

I'm curious on how best to structure this approach: Who owns what, who gets what, rental income & depreciation (all tax treatment).

The remaining 1 million have a higher percentage of owner occupancy and also higher median income.

If you need to build reserves after acquiring the property, allocating a portion of the rent towards reserves is essential, aiming for at least 10-15% of the gross monthly rent until you reach a comfortable level, ideally 3-6 months of rental income.

I want to get into the market and begin adding to my portfolio and passive income.

We review a multitude of data sources to provide a real-time view into a real estate marketWhile a data-driven approach is useful to narrow down all the options, having boots on the ground (i.e. agent or contractor) is always important for due diligence

He’s aware there is likely a tax implication on the income of the LLC but main concern is if becoming a part owner would affect his eligibility for capital gains exemption thru 121.

Loss of use coverage provides insurance against the reduction in income it doesn't obligate you to keep the tenants lease going.

It's like playing Russian roulette with your income.