Hello,I am interested in purchasing a recently renovated $195K property as a 'secondary' home for the next 4 years to use as a future LTR.

Purchase price: $169,000 Cash invested: $35,000 Looking to put 70K into the separate garage to make a 730Sqft home.

You might consider hard money for the initial purchase or going with a DSCR type lender if you find something that is more turnkey.Hey!

You can find some 2 units under or around $250K but they have been sitting on the market for over 150 days which tells you its not a great deal if it were an investor woud have already purchased it 4 month ago.  

Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

However, the LLC is grandfathered in, and so they are saying we would be able to still operate this if we purchased and managed under the LLC.Obviously a lot going on here, and I am still relatively new to this world (would be first STR in Nash).

Purchase price: $155,000 Cash invested: $60,078 Sale price: $275,000 Fix & Flip property in great neighborhood in Saraland, AL.

I currently own one property, and I’m planning to purchase another.

Since they can't do each property individually, they use comparable sales to make broad generalizations to determine percent changes.

I would tend to agree with the other CPAs typically.The 500-hour test is one of seven material participation tests used by the IRS to determine if a taxpayer is actively involved in a trade, business, or rental activity.