You operate a trade/business - then you have all deductions AND an obligation to issue 1099sB.

That ends up leaving a void that's filled by unprofessional, and in some cases outright criminal operations there in the PM space.

I successfully operate a small portfolio (3 duplexes and three single families) out of state and a good  property manager is essential. 

@Eric LoweIf you cannot find a local firm, reach out to these experts who operate national firms:  @Bernard Reisz, @Yonah Weiss, @Julio Gonzalez. 

But unless their businesses are structured very carefully they're no operating in the clear. 

Since you have bought a foreclosure before, at least you have experience with the liens and the process, but you won't get a final tally of the liens unless you can get your title company to run soft title search for these things in advance.Closing on a foreclosure anywhere in Brooklyn seems like a nightmare to me from an operational end.

But honestly, there are multiple (mostly all) operating illegally.

Because there is so many novices who jump into STR without the skill, knowledge, ability to actually operate it and rapidly are bleeding-out.

The main reason is other buyers who are better able to pin down operating costs will either outbid you because they have their costs right, or you'll outbid them because you have your costs wrong. 

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.