My take: Gather intel on the area (neighborhoods, tenant demand, property management), have a game plan for your numbers (cash flow, maintenance reserves), and adapt as you go.

If it’s substantial, it might be considered business income.

Market dictates.. if your product is well received and in demand then you should be able to just build them and list them..

Land doesn’t depreciate, and while buildings require maintenance, they usually gain value as markets grow, demand increases, and inflation takes its toll.Real estate investors benefit from a significant tax write-off based on the concept that properties lose value over time, even as their market value skyrockets.

I only figured out after Baselane sent me a stern email demanding the refunded money from me, else they will pursue legal actions such as collections and even putting a lien on the property.

That's right @Lucas Martinez, rents have gone up substantially here which is why the adu makes a lot of sense.

Spending more than 100 hours and more than anyone else, or substantially all the time in the business.So if you own an STR and meet the test, you can set up a tax deduction machine.Some issues -- You have to count your time, and the time other people work in the biz (cleaning, maintenance, etc..)- If use the property more than 15 days or 10% of the time it becomes a residenceI suspect this is part of why the STR trend has picked up so greatly amongst professionals working in tech.

Yes, up, it's simple obvious supply demand metrics. 

Weren't you required to put substantial DP?

In fact if it is a Ponzi scheme than there’s precedent for the government to demand the return of funds paid out to investors over a certain amount that are declared to be from the investment of newer investors.