A common strategy used by investors, such as those operating through PadSplit, involves purchasing the property, completing basic rehab, refinancing, and then using cash for the interior build-out.Another potential red flag, even without converting common areas, is the addition of individual locks on bedroom doors.

Many of these markets are very well represented by sellers & turnkey operators here on BiggerPockets.

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

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

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. 

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

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.