Selling and buying something else you want keep and doing a cost seg in would help with the tax burden probably better in this situation.

Kudos to you for doing something to create a secondary income stream. there are 5 income streams in RE rentals, possibly six if you do things a certain way.The reality here is your model (buy box) is suffering from too high an entry and too high a cost of capital.

Closing CostsMake sure you also budget for closing costs, which are a collection of fees and payments made to the various parties involved in your transaction.

For cash-on-cash evaluation of rental properties, it is critical to identify ALL of  your acquisition costs. 

Smart thermostats, in particular, can help you monitor energy use and lower costs between stays.I hope everyone’s experiences and perspectives help guide you as you start this journey!

Look at all of the costs and then all of the revenue and make a decision based on that. 

You have to have exit values of single family homes high enough where build cost can work.

You will incur more lending costs but you will only be in the first loan for 6 months.

If they want to pay $1,300/mo as is, saving you the Reno cost.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.