Also, be prepared for potential delays and unexpected costs, especially with long-distance renovations.

I'm happy to assist you in testing if you want to contact me off the forum.

Nobody can just guess correctly THREE times - when I’m correct again you’ll know I have a system that has been tested and works.  

You should make sure that in the worst case scenario (no rooms rented out), that you will be able to afford the mortgage.Even though it's unlikely all the rooms will be vacant, its equally unlikely that all rooms will be rented out for a long time, room renters tend to move around a lot so you still want to make sure you're prepared for the vacancy, as Koren mentioned above expect leases under 12 months.  

I am excited that I am finally preparing to purchase my first investment property!

There are 7 material participation tests and these are the 3 most common for real estate investors AND you need to meet one of them: Spend more than 500 hours on your rental businessDo substantially everything for the rental businessSpend more than 100 hours on the activity and no one other individual spends more time than you doAnother way to offset non-passive income (e.g.

Even if STRs did unlock PAL (and they don't), out of state STRs probably will not work anyway, due to the challenges in meeting "material" participation test for out of state properties.

Therefore, amounts separated for by a cost segregation study would not technically increase the "non-real-estate-property" for the purposes of the 15% test.

I have been told LLC under 1 name as a single member LLC is less complex and less expensive etc preparation wise.

The GP or the deal doesn't pass the sniff test and the smaller less sophisticated investors won't conduct the same level of diligence2.