You are causing a $125k tax bill by not selling this property as your primary.

These are some of the ways the clients could be affected by property managers who are not prepared: Extended VacanciesInadequate marketing strategies and tenant screening processes can result in prolonged vacancy periods, translating into substantial lost rental income.High tenant turnover due to poor resident relations further exacerbates vacancy losses.Inadequate Maintenance and RepairsNeglecting preventive maintenance and delaying necessary repairs can lead to accelerated property deterioration and higher long-term repair costs.This can also negatively impact tenant satisfaction, contributing to higher turnover rates.Legal and Compliance IssuesLack of knowledge or disregard for landlord-tenant laws and regulations can expose investors to costly legal disputes and penalties.Failure to properly handle security deposits, evictions, or fair housing practices can result in significant financial liabilities.Ineffective Financial ManagementInaccurate budgeting, expense tracking, and financial reporting can lead to uninformed decision-making and missed opportunities for cost savings.Failure to optimize tax strategies and leverage available deductions can further reduce net returns.Diminished Property ValueInadequate maintenance, high vacancy rates, and poor tenant screening can negatively impact a property’s perceived value and appreciation potential.This can significantly affect the long-term return on investment when it comes time to sell the asset.While a 10% management fee may seem reasonable for a well-performing property manager, the cumulative impact of mismanagement can quickly escalate the effective cost to investors, potentially outweighing any perceived savings on the management fee itself.

@Zak BeardTotally depends how much you have to put down.

I want a simple place to track my P&L's and tax implications like accumulated depreciation and tax deferred tax losses. 

But you've already paid a truck load of taxes by getting so much for the option.It is possible to sell the property without the deed transferring. 

Market is priced based on auction style, so a lousy house can be sold higher than a good home sometimes depending on seasonality and availability of buyers. 

With partners or a property manager, it would take more units.To get to $10,000/month ($120,000/year) in mostly passive income, you may need 50-100+ rental units depending on the cash flow.

Hi Ronald, depending on what part of shelbyville the house is located. overall I would stick around with renting it for SFR,  Rental market is good.

She had on demand PDF's of her last years tax return, bank statements and CC statements.

🌴PS - It might also be a tax write-off for you.