Growing a portfolio by X doors per year isn't always a good strategy.

Unfortunately most lack the balance sheet to obtain favorable financing, can't afford to put any skin in the game and fail to make a compelling reason for why the investment makes sense or to justify the structure they are seeking.

There are several different types of income in the US tax code.Two main types are “active income” and “passive income".Active income is money you earn from working, such as wages from a W-2 job or income from running a business.Passive income is money you earn from investments like real estate, stocks, or rental income from your RE portfolio where you earn $ without actively working.Normally, you can't use passive losses (like losses from real estate investments) to offset active income like your salary from a W-2 job.That is unless you are an RE Pro.The reality is, that Real Estate Pro status is just a filing status similar to filing married or jointly.And if you are a real estate professional you CAN use passive real estate losses to offset active income from other sources.To qualify as an RE Pro you must:1.

Great if you want to add rentals or non owner occupied properties to your portfolio but not so great if you wanted that winter log home in big bear CA or Mammoth lakes, CA.The good news is you're from TN so you have no earned income tax from the state on wages only interest and dividends in certain cases so thats a pro right?

I love the why and your current game plan.

It’s a long game so worrying about the short term is kind of pointless.

To win the STR game, especially if you're a new entrant, the most important aspects are 1) Amenities2) Location3) Property type4) UniquenessAll are geared toward you standing out on Airbnb/VRBOHot tubs, fire pit, bowling alley, pools etc. or being in the best location in an area as well as being to host a large group are all things to help you win.

It’s always helpful to hear how others structure these kinds of deals, especially with larger properties like mobile home parks.Also, what’s your game plan moving forward?

Every investor has a different game plan.  

Building a duplex could enhance your portfolio, but be sure it aligns with your financial goals.If you have any questions about financing options or deal analysis, I’d be happy to help further!