@Sharon Pumpelly, I think this is a very good question.

I have a tenant who moved into my rental in California in Feb this year.

I'd put a vote out there for Bruce, he would be an interesting guest.

This approach allows you to manage the property closely, benefit from homeowner loan terms, and potentially increase its value with improvements before renting it out.As you transition the townhouse to a rental, ensure the rent covers all expenses and provides a profit.

Hi @Bruce YiI can potentially help you with this. 

Or is there a more efficient method to do this?

I imagine this has something to do with taxation, so I would advise a CPA. 

How is this calculated?

He showed me where to access real estate commission forms on my state's website and pointed me in a lot of great directions.

There's no shortage of clickbait articles online, including many on BiggerPockets, that claim to reveal "The Best Market for Real Estate Investment."