In CA termites aren’t too terrible of an issue to have to get an annual spray.

The CPA said anything bought for the rental is all a right off as well as utilities etc. 

Purchase price: $330,000 I bought my first house at 22 right after I got out of the navy I have two roommates that pay my mortgage I pay the utilities and internet How did you find this deal and how did you negotiate it?

@Nicholas L. thanks for the response, I'm planning to consider my personal expenses + housing expenses when saving.For my housing expenses, I was going to include operating expenses such as (taxes, insurance, utilities, etc) and then the mortgage and PMI.

There is a new build project of a 3 bed 2 bath bungalow semi with attached garage for under $400,000 that comes with a rent guaranteed of $2000 per month plus utilities for 2 years.

Teaming up with a realtor and utilizing various Facebook Groups sounds like a perfect place to start.

Regarding the tenant utilizing extra space, you can provide a rental increase package to him since it sounds like he has a verbal agreement.

If you decide you don't want to take cash out and rates continue to stay low, you can always utilize the VA Interest Rate Reduction Refinance Loan (IRRRL).

You have gross rents, and can likely figure out remaining expenses (taxes/ insurance/ remaining utilities etc.) for an NOI.

So, maybe they are giving the termites an oxygen infusion.My long story reminds me of our pest control company that sprays all our apartment buildings and office every single month.