@Kyle BrinksI am not sure if you ever got an answer.There are pros/cons in creating a management companyCons - You are converting income that is rental income to ordinary income that is possibly subject to self-employment income.There may be additional costs related to this strategy such as costs to create an additional entity, additional potential tax filings, possible payroll tax filings etc.

That way the loss of one large employer in a town won't mess up your investment.

Josh has done several shows on there about the mindset required to increase your worth to your employer and your own business.Overall, sounds like you are doing a great job so far.  

(Owner covers water and garbage.)Turbotax will not account this as rental income, and wants to count it as self-employment income on Schedule C.  

Some insurance companies LOVE to do this "bait and switch" on you. 

One tenant provided employment details but the report came back with “unable to verify employment.”

So you will go from no tax liability and reinvesting all the money to paying 40% of your profit to the IRS in ordinary income tax + self employment tax + ACA surcharge tax + state tax.  

I think "commit first, ask question later" sounded a bit like Bait-and-switch but on the buying side, the question is would've he paid him the whole 120k if there was no problem with the basement and he didn't have to clean up after him?

Yes, there is an investor program that with 20% down, you don't put any income or employment on the application.

But, humans will expect employers to be extremely flexible with their requirements on working location.