And I would probably look at the smaller houses where you can keep your unit costs down but still rent them at a higher price point relatively speaking. you are arguing one asset class. build a new hotel anywhere in America on any soil it's better than any apartment complex you can own. lower cost per sq ft than type 1 buildings and higher exit. we just ran into that and hotel is way better use after a rezoning application got declined for apartments. hotel is looking much better 

Great point on the differences it can make wrt the more complex structures.

What the law says is often more of a last resort than a first option initially when there is a dispute because enforcing your rights in court and collecting afterwards can be costly and difficult. 2.

To add an additional layer of complexity I am under contract to buy land and build another STR.

Hi Folks,Need some clarification on this complex topic.There is a lot of discussion on these tax nuances in BP forums, so I am happy to read any particular thread you can point me to.Basically I have a W2 (above income limits) and I am a General Partner in a multifamily deal.I have received 2 K1s from this deal (one as a GP) and another as an LP (since I put in some of my own money).Am I allowed to take the K1 losses from this deal to offset my W2 income?

My thought is take them to court.

While it’s frustrating that the tenant is still there and not paying, turning off utilities could complicate the situation and potentially lead to legal consequences for your "friend".In the meantime, document everything (the tenant’s non-payment, the lease terms regarding utilities, and their attempts to resolve the issue) to present in court, which may help recover the outstanding balance later.

As @Kyle J. described, you're adding a lot of complexity (and closing costs) on a hypothetical. 

For residential - just making it more complex come tax time.

I failed to do this twice and ended up in court both times.