At 22 years of age, I got a job teaching high school social studies.

Looking for comps in a one mile radius is proabably too tight, fannie mae moves out to 3 miles for 2 and can go 5 miles for a third comp.You want neighborhoods that are similar, not the same, simialr amenities and location to schools, business and social influences.

There are 3 big "components" (can't come up with a better term at the moment) to forming an LLC (or any business entity): 1) Formal paperwork to be filed with the state;2) Internal paperwork (e.g., operating agreement, bylaws, meeting minutes [if any], etc...); and,3) Understanding proper proceduresFORMAL PAPERWORKThe formal paperwork with the state is pretty simple and straight-forward: typically you need to state the proposed name of the entity, the address of the entity, name a statutory agent who will receive notice of official information, name of who is forming the entity, and signature of the person forming the entity.

I personally wouldn't, but I'm not into casual socializing with tenants.

At the same time, I feel like I'm limiting my social abilities as well as my interest in finance and investing by going straight tax accounting.

Joe, I see it and anyone who has been around the block has seen it.Actually it can be very trying at times, taking another step back and looking at the big picture, asking yourself if you're just cutting a deal or if you really are taking advantage beyond that line of fairness.Your conduct is your reputation and since RE is a social business an outcast just won't make it over the long haul.And Mark, we have had a few that have explained thier strtegies or methods that are clearly illegal, BP is a treasure trove for authorities.

Some can make up the fact of using poor or invalid contracts by thier salesmanship and social skills leading a seller and buyer to a settlement, but that is not always the case.

What are the social, economic, financial and physical attributes of RE?

Technically speaking; without a relief valve installed - yes the water heater could explode.But the weakest component is what would fail and that it likelier to be a soldered copper fitting than the steel HWH tank.Also: unless the inlet valve to the HWH was closed - any excess pressure would 'relieve' by backing water out into the cold water supply line.stephen------------- Originally posted by @Jaime Penix: Interesting.

You can use the provisions of Section 121 to exclude profit on the sale of your primary residence from capital gains taxes, while the sale of the rental units is a taxable event.During your period of ownership, you decided not to simply depreciate the entire rental property (excluding land) over 27.5 years, but instead you segregated your rental units into different components and allocated your cost (depreciation basis) for the entire property among the 5 year property, the 15 year property and the 27.5 year property.