The key is ensuring you work more hours than anyone else on the property, including your property manager.Keep a detailed log of your hours spent on the property—managing listings, coordinating cleanings, marketing, and even initial decorating/setup all count.Some CPAs are conservative and hesitant to qualify STRs as active, particularly when property managers are involved.

So that helped.I personally wanted to be more conservative as I pretty much reach “the number” that I needed (note that what “I needed” is different from what “I wanted” or what I was expecting by default.)

This should incentivize them to conserve energy.

So if the LP's have enough cash they simply pay the loan off and own it free and clear.. but the size of the deals are so large raising cash to pay off debt simply is not realistic at all so if the property goes into default your junior position investors find themselves wiped out.Further more thats why a debt fund like Chris has can be a good choice for the very conservative investor..

Conservatively speaking, we probably own $70k in equity in the duplex and $50k in our own home.In the limited research I've done, a HELOC seems like an ideal form of financing a BRRRR property.

But balance is key—keeping some cash reserves for unexpected expenses is critical.Lastly, I’d recommend running detailed numbers to ensure the property cash flows well, even with conservative estimates.

Just be extra conservative with your ARV estimates and have a great team of contractors to keep rehab costs in check.

I tried using the biggerpockets rental calculator this morning and the cashflow was negative, but I may have been too conservative with the numbers.

Be conservative and don't rely on young adults to pay their rent.

From my analysis—even with very conservative numbers—it looks like a cash cow.