Talk to a tax pro before you buy or set up your LLC.
Like has been said and resaid, tenant filtering is the key to a happy life. Be careful getting people that make too much money also. The worst tenants I had was a surgeon and nurse anesthesiologist husband wife pair. They had fuck you money and treated everything as disposable including my property. Things like hanging pictures with framing nails, and plants with lag bolts, moving in and out with a demolition crew, etc. I booted them at the end of the first lease. It was hard to be pissed. They treated my shit just like it was their own. I was just done with it. The flip side is the opposite. Had a couple move in that was borderline able to afford it. Then the husband died in a car accident and the woman was afraid to tell me when there was a problem. She was afraid if the unit wasn't making money, I would raise her rent. So when the AC unit froze up in the attic, she just turned it off and opened the windows. Then when it thawed, it overwhelmed the half clogged drain and flooded the ceiling. You would think she would call for help at that point, but no. She called her brother to come over and repair the ceiling which was of course a shit show. All because she didn't want me to call a service company to fix the AC. When I did a walk through, there was dripping sinks, running toilets etc. You want people that can comfortably afford your rent and understand your goals with the property, IE suck the money out of it for a while and move it or keep it nice for a long term investment or improve it as you go. That way they understand that reporting problems is no big deal, either you will ignore them or fix them, but need to know about them to determine consequences.
Let them know there will be walk throughs with some service that is done at regular intervals. I chose bug spraying every 3 months. I made friends with the bug spraying dude and just had him call me when he was going to one of my properties and I would walk through while he was there looking at HVAC filters, breaker panels, water heaters and looking for drug operations or indoor smoking or pets without damage deposits. In my single family units people didn't appreciate that much, but in multifamily, they liked it because it kept shit from getting out of hand. Especially after the first one when they seen I was genuinely just checking on the property and didn't care about their personal shit.
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