Another item to factor is cost.

I think the top factors are type of home (comparing single family to apartment is no longer done), overall size, and interior features like central AC, approximate age of renovation, etc.

Even if the property is centered in a city with a population of 30k it may be considered rural due to other factors.

No one mentioned this as a factor, but I assume this would severely limit/prevent me from deducting anything other than depreciation?

I'm curious, if you were to invest elsewhere, what areas would you consider and what factors would drive your decision?

Most fail to factor this in.I believe the fact no meaningful tax advantages exist saved you from going down a rabbit hole that would have been adverse to your business more generally.

For pros, he challenges conventional wisdom and explodes sacred cows by exposing hidden conflicts of interests and mis-alignments that many in the industry won’t admit to.

@Larry Caper if your goal is to do your own deals and you do not want to expose your investors to other operators then you need to create a fund of funds.

@Michael Politi Investing in preferred equity using qualified funds, like an IRA or 401(k), may still expose you to Unrelated Business Income Tax (UBIT) because the capital stack includes 70% debt.

So it's not the same as bank which might do 2-2.5x once debt payments are factored in.