Even once you get a team setup (realtor/cleaner/maintenance/HVAC/plumber/pest treatment/and more) there is a constant barrage of issue that need attention.

Ethically I have always credited rent back to the tenant if I got another tenant in place at or above the previous rate.

We've found the best returns on properties that needed a bit of TLC before turning it into a rental.We actually hired a company to do a treatment on the ways of one unit.

I'll disagree with the above - the holding period begins when you acquire the asset, this is different than the date in service..Thus it is possible to have a split holding period - the basis of the property you have held longer than 1 year with long term treatment, the basis shorter than 1 year long term.

Your LLC agreement will govern the allocations of income and expense (within the limits of the partnership Rules)and the information will be reported to you on the form K-1.There are many variables that will affect the treatment of the $4,500.

It isn't always easy, but I think we are showing our kids a great work ethic and a way to a more secure financial future.My 7 and 5 year olds enjoy watching shows like Flip or Flop and Rehab Addict, and often WANT to come with us when we work on apartments.  

These are professionals with additional training and a stricter code of ethics.

It is important also to consider other tax consequences at the outset or at least have an understanding of their treatment before purchase.

Rather than tax flippers, the solution should be something akin to Fannie/Freddy foreclosure sales, where owner-occupant offers get priority treatment.

In addition, for high income earners Syndications have a much more favorable tax treatment especially for not increasing ones taxable income when taking into consideration depreciation.