They give you multiple-income streams that help protect you against the threat of vacancy and non-payment, and you can often substantially reduce your cost of living by purchasing as an owner-occupant and living in one of the units while you learn to become a landlord and property manager.

Do not provide substantial services 3. average stays of 7 days or less4. materially participate Primary Residence route:I presume that doing this route will:1) portray yourself less risky from a lender's perspective2) Less downpayment requirements.

Determining whether the venture falls under a service or rental business hinges on the provision of substantial services; for instance, if a bed and breakfast service is offered, it must be reported on Schedule C, triggering a 15.3% self-employment tax.Moreover, personal use plays a crucial role in the classification of the property.

This resulted in a substantial $2500 reduction in the sale price.In summary: The place I bought from Ohio Cashflow was an old, broken down home that required frequent repairs despite having "significant" improvements at the time of purchase.

I have also never been in a position to have a substantially larger down payment in order to be considering a different REI strategy that house hacking. 

We have substantial closing costs on the sale, primarily transfer tax and realtors' commissions.

A cash out refinance to buy more property would put a substantial dent in cash flow with current interest rates.

You could buy 30+ cash flowing townhomes in this area of KC for that that will generate substantially more than what you are getting right now not to mention paying down debt on the new property and depreciating it to lower your tax basis.

Most investments I see that are positive cash flow out of the gate come with a substantial amount of future capex.

These are substantial repairs.