If you did not claim all the depreciation you were entitled to deduct, you must still reduce your basis in the property by the full amount of depreciation that you could have deducted.

We currently have all the cash flow needed to pay and reduce those debts. 

Between that and another year of payments reducing some principal you may be in a position to be able to just sell for a net 0 next year.Are you sure you will even qualify to keep the home and get another?

I would steer clear of dry cleaners because that would dramatically reduce your pool of buyers, that is if they clean on-site.

YES, some people can't use a camera, can't complete a decent post, but I guess they're reducing competition for our postings.But don't forget .... all those photos of bathrooms with the toilet lid not closed.

You have two options here:1) You can do everything you mentioned on your own, or2) you can work with a turnkey property provider that will help you with every step of the process, including the market research (comparing one market to another), running a detailed cash flow analysis, and providing the tenant and property manager all "under one roof".I used to do rehabs back in 2004 but quickly decided to go the turnkey route as I was able to cover more ground and reduce my risk and exposure.

Taking steps to reduce this will make your life easier and safer.These are not statements of opinions, they are facts.

This is due to Los Angeles city rent control.The cheapest way is for me to just reduce their rent for that month or pay them a pro-rated rental amount - e.g., if someone pays $1500 per month rent, give them three days worth of rent, which is $150.

But I do want to keep better tabs on what is going on, and reduce the lag time between months, especially when there is a problem.For my bookkeeping purposes, should I be creating an internal invoice for each property, dated for when the PM is supposed to make the deposit (like the 10th of the month), and then match the deposit with the invoice?

It is applicable to BP users because while a passive loss can reduce AGI, it must be added back to determine your MAGI, which is then used to determine the special allowance deduction.