I reading your comments above and you are looking at SFR and comment how low their cashflows are.

Like I mentioned, I’m blessed to live in Northern California and bought my home at the low point in the market.

While on a road trip last week, I finished Brandon Turner’s The Book on Rental Property Investing, which was amazing, Ken McElroy’s ABCs of Real Estate Investing, and started Brandon Turner’s The Book on Investing in Real Estate With No (and low) Money Down.I’m extremely interested in the concept of house hacking and the plan for using that savings to help buy future SFRs that Brandon explains in his book and that’s what I’m going to spend a good portion of my time on researching going forward.

@Jack B.Three scenarios: 1) If you reinvest- yes it is traced to that activity and deducted2) if you use it for personal use - non-deductible3) if you hold on to it on your LLC account/ books, but dont reinvest - it can be argued that you are holding on to that money for future repairs and stuff and you refinanced/mortgaged because the interest rate was super low compared to what coming in the future.

Flipping in the uk has low transaction costs and therefore makes lots of sense, but this post (below) made me a little crazy because in the US, transaction costs make sure the entrepreneur with all the risk/work gets only half the profit....even if it goes well....whereas the realtor(s) and money guy gets half ( or more) of the flip for close to zero risk.

Do you have experience in the area with rental properties to justify the low numbers? 

If you want to pursue a claim for the water bill and incur the costs of said claim you can but your chance of collecting is probably low.

I may have left out insurance, but the amount is so low it will impact the bottom line/decision very little.3. 

This 2003 house is a fairly low-maintenance property and I realize that to buy other properties I'd likely be getting into more older properties which inevitably will require more maintenance.

But I’m in an area where $500k+ with 15k+ in taxes can be the low end so I’m trying to not be jaded by a lower prIce poInt.Very much appreciate the feedback from everyone...