Why do you not include your monthly mortgage when subtracting  operating expenses from your Net income.

What do you do to keep your rekey/locksmith charges down? We have Kwickset Smartkey locks but are they legit for multi-family use? What about mailbox keys?

I know that this is more a local problem with the big growth my building area is going through, mainly because of the smaller sizes of the cities and towns, in which I operate.

The tenant was also charged $130 for tenant caused repairs (I.E. dog holes in back yard).The work needed upon move out was:- Full paint including ceilings in all 3 upstairs bedrooms - normal wear and tear- Paint interior and exterior doors front and back - normal wear and tear the sun beats down on these doors- Fill in all nail holes and repair where old curtain rods were on windows- Install smoke alarms - normal upon move out- Change furnace filter - normal upon move out- Fill dog holes in back yard - Check all plumbing and electrical to ensure is functioning (switches, plugs, outlets, drains, faucets) - precautionary to avoid maintenance issues as it is cheaper to do everything at once rather than have several maintenance calls after a move in- Roof repairs - not tenant damage- Ceiling repairs in upper bedrooms - due to roof leak- Repair storm door on front and rear entry- Remove all debris throughout the property- Check all cabinets, doors, hinges, are tight and open/close as they should - precautionary to avoid maintenance issues as it is cheaper to do everything at once rather than have several maintenance calls after a move in- Repair kitchen cabinet that is leaning forward - minor repair- Install shower head- Reglaze bathtub - not tenant damage- Install light bulbs in every socket - normal upon move out- Check all ceiling fans operate and install globes where missing - precautionary to avoid maintenance issues as it is cheaper to do everything at once rather than have several maintenance calls after a move in- Change front and back entry door locks - normal In move outYour response below:Skye,Isn't this supposed to be covered by the tenant's deposit?

@Kirk WatkinsPartnership entities have so much flexibility that you can literally allocate income/losses in anyway shape or form.You just need to find the partner to agree to the terms that you want.You would then need to find an attorney to draft up the operating agreement/partnership agreement.

You’ll be cashflow negative equivalent to the interest of the HELOC.Purchase price: 500kHeloc: 120k (20%) - approx $500 monthly interestMortgage: 380k - Approximately approx $2000 monthly interest and principalAll other operating costs (condo fees etc.): $1000In this scenario let’s imagine that you might be able to get 3k (doubtful but lets dream!)

The only LOC you're going to get is one attached to a stable asset (such are your primary residence), or a Business LOC if you have an established, profitable business that needs operating $Good luck!

@Joseph PuglieseIf your business is accrual basis and previously accrued the revenue and included it in taxable income, yes you could write off the bad debts.If cash basis, you don't get to write off revenue you never received as you never were taxed on it in the first place.There are extremely limited exceptions to this, particularly if you're cash basis and recognized the revenue under constructive receipt, however I suspect your fact pattern is not that complicated.You can deduct your normal operating expenses of the rental.Your CPA is best equipped to help you deal with this.

I think this is going to be a game changer, as with these rates, it is not possible for an average Airbnb operator to make money. 

I assume that you don't have to operate this car wash.