And.....”preREO”...just another goofy a$$ made up marketing term. 

While this is a great and highly motivating goal, most people are either clueless or incorrect in their belief as to what is required to obtain this “lifestyle”.Understanding of the “how to” get there is further obscured by the misleading, and often patently false “pathways” sold by real estate educational MARKETING companies as workshops, upsold to association memberships, upsold to mentorships.

RE has always been a big thing that always intrigued and in 2024 I went ahead and took the risk of buying a fix and flip investment with a partner and soon it will be on the market!

However, I'm having difficulty narrowing down a few markets, such as Tampa or Kissimmee/Orlando.

Quote from @Mo Karim: How are the Milwaukee burbs market?

I’m planning to move what I have in stock market ($2.5-3Mil) to buy a good realestate.

I am looking to do AirBNB Arbitrage in Lancaster area as it is the closeby market to me.

In your case, changing the property from a rental to your primary residence constitutes a change in use.The depreciation recapture will be calculated based on the fair market value of the building at the time of conversion, not including the land value.Since you're tearing down the existing structure, the entire amount of depreciation taken over the past two years will likely be recaptured, as the building's value at conversion will effectively be zero.The recaptured amount will be taxed as ordinary income, up to a maximum rate of 25% for residential rental property (Section 1250 property).

The financing will then dictate which markets are and aren't within your budget.

There's no precise figure because no one will understand your STR or market as well as you do- or, as well as you will (with time).