Depending on your age, that may be a small amount at the beginning, but it gets to be a bigger percentage of each account as you get older and your life expectancy gets shorter (according to the IRS table). 

When your tenant renews their lease and the rent increases, the handling of the last month's rent can vary depending on the terms of your lease agreement and local laws.

Here are some tips and insights to consider as you begin building your real estate portfolio:Options:Refinancing: If you have equity in your condo, consider refinancing to access funds for future investments.Investment Loans: Explore options like conventional loans for financing future rental properties.HELOC: Depending on your equity and financial situation, a Home Equity Line of Credit (HELOC) could provide flexible financing for down payments or renovations on new properties.Build a Financial Strategy:Budgeting: Create a detailed budget that includes mortgage payments, property taxes, insurance, and maintenance costs for your rental property.Cash Flow Analysis: Calculate expected rental income versus expenses to ensure positive cash flow.Emergency Fund: Set aside funds for unexpected repairs or vacancies.Research the Rental Market:Location: Choose rental properties in areas with strong rental demand and potential for appreciation.Tenant Profile: Understand the demographics and preferences of renters in your target market.Market Trends: Stay updated on rental market trends and local regulations affecting landlords.Property Management:Self-Management vs.

Depending on your current rent, I suspect you are likely to recoup your investment in saved rent pretty quickly which makes me think it’s going to end up as a great learning experience, even if the upside doesn’t pan out.Make sure you get clear divorce options for the partnership as living in a rundown trailer scrounging for money to fix it could end up rather stressful.

Summer time, rates are higher as these guys are busy, so they tend to throw out big "if they pay great" numbers to control their business flow.I agree, if it's there and it was working, it needs to be fixed.   

This can potentially enhance long-term wealth building.Tax Deferral-By reinvesting your proceeds into like-kind properties through a 1031 exchange, you can defer capital gains taxes, allowing you to reinvest more capital.Market Timing-Despite the competitive market, a 1031 exchange gives you a defined timeline to identify and acquire properties, potentially putting you ahead of other buyers who might not be as motivated by a tight deadline.Cons:Lower Initial Cash Flow-Acquiring additional properties may reduce your immediate cash flow, especially if properties in your target market are not as cash flow positive as your current property.Risk of Overpaying-In a competitive market, there's a risk of overpaying for properties just to meet the exchange deadline, which could impact your overall returns.Either one is a valid option, but overall it depends what your financial goals and restrictions are.

As Dave points out, only real estate held for business or investment use qualifies for 1031.  

Having done this business mainly on my own, it would be awesome to connect with people who share similar interests and close some deals/JV with.Thanks!

Another option is to have cash saved for the rehab-- it really depends on your situation and the extent of a renovation.Start hitting up lenders in your area and see what they can share-- each bank might be slightly different.

My policy is business before people.