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. 

Paying the mortgage down reduces the tax benefits of interest paid, but it is interest paid.Usually, people sell in 7 to 9 years, you may be there longer, but on the average......consider your position, size of family, ages, will you need a larger home, smaller home, will work be stable, will you need to move, any in-laws moving in (LOL)?

A small business owner has more deductions than a salaried employee, and so reduces their taxable income accordingly.

As a result, the carrying value of M&T's Alt- A portfolio that had been held for sale was reduced by $12 million in the first quarter of 2007, which M&T estimates will result in an after-tax reduction of net income of $7 million in the quarter, or $.07 per diluted share.Management of M&T believes that the value of the Alt-A residential mortgage loans it holds is greater than the amount implied by the few bidders presently active in the market.

Not only does this build a rapport with them (something you should have been building with them while they were tenants anyway), but also will reduce the likelihood of them trashing the place.I really, really contend that you need to build a rapport with tenants to prevent conflicts.

I'm looking for ways to reduce income tax and as far as I know, real estate is the only investment where you can write off interest.