Hey, that's a great question and definitely a smart one to ask when you're diving into the details of STR (short-term rental) investments.Let me break this down from both a tax and practical standpoint based on what I’ve seen with clients in similar situations.

Likewise, a low value post, that doesn't technically break any of these ever changing rules, is still a low value post with out without whatever crosses the most recent line of self promotion.The incentive to provide value will take care of itself.

However, when you factor in the HELOC, we have a negative / break-even cash flow (HELOC payments are about 25% of the revenue from both).

So that first year may be a 2 to 3k loss or break even unless he gets lucky. 

I think they were worried about breaking the lease or a new owner immediately canceling the lease.

The manager will either make or break the investment through their ability to navigate Section 8 and adapt to changes when they come up.

I found it near impossible to even break even out here when buying with little to nothing down, especially with the current rates. 

I've worked with a lot of investors who’ve done cost segregation, and the recapture part is always something that can catch you off guard if you don't think it through.Let’s break this down step by step..just like when I helped a buddy of mine who had a similar situation a couple of years ago, only he was dealing with a multi-family unit, not a single-family home.

Even when it is completed there is ongoing monthly cost to keep the code from breaking and keep it secure and updated.

It breaks my heart because he’s really trying his best.