In the future, to reduce exposure, I would probably rent through a LLC - either a large place in an awkward spot (i.e. on a busy street, not surrounded by homes) or a commercial office that was previously a home and turn it back into a residence.Hope this answer helps.Best,Dave

@Miguel HernandezI would speak to your cpa but also want to clarify that real estate let’s you “defer” taxes but not lower themA classic example is depreciation which you can reduce your tax liability each year by depreciating the property but for tax purposes this lowers your tax basis so when you sell you are then paying those deferred taxesIt helps because you can invest those funds etc or do a 1031 exchange and continue to defer the taxes but eventually you will have to pay.

Then reinforce your phone conversations with email to have everything in writing.This is one reason I'm hesistant to go to 100% email screening for tenants, although there is another site that recommends doing this, and I can see how it would reduce my phone bill.

This takes a little more work, but it's the most fair and reduces the likelihood of tenants that squander utilities.If you choose #2 or #3, there are considerations:Start with an average.

But I do still have consulting experience in advising senior leaders of companies on how to reduce OpEx and increase profits, so to me, this isn't foreign. 

Rodrigues right away to figure out what you can qualify for and if you qualify for any special programs to reduce your downpayment or closing costs even further!

I'll be on the lookout for these and if I cannot source locally, will buy online in bulk.

@Issac San Miguel - yes they did, however; the actual costs are just so much more than expected.....I am still looking at ways to reduce cost and a prior post suggested looking at this as a rental vs a resale.  

Creating a diversified real estate portfolio of different sizes and types in multiple locations, with varying financing structures and cash-flows, can reduce risk and create steady income.

Or another way is to bring in the realtor, to broker the deal for a reduced commission so none of you guys have to deal with any of it, and you know it will all run smoothly and efficiently.