Real estate has so many tax benefits and credits available, that I always tell people it's crucial to have a CPA that's extremely knowledgeable in this area.

Even if the prosecutor doesn't get a conviction, the year and a half of court time and expenses of legal defense totally outweigh any short term benefit of getting an overpriced property by taking over someone's loan.

The real obstacle is not the STR loophole itself but the tax benefit that it's based on.

There may be a property tax benefit to leaving pieces.

Is there any benefits to not creating LLC and using multiple conventional loans when buying investment properties?

After doing a little research you do have to reside in the residence to get any tax benefit.

@Paul Zofsak how will you prove in court that the tree was NOT in good health?

Elect for that LLC to be taxed as a corporationLegal benefits (if any) come from Step 1.

However, I'm drawn to the long-term benefits of multifamily properties.

DST providers/literature often cite that though the return is low, when combined with the tax deferred benefit, it’s better than selling an asset, paying the capital gains, and reinvesting in a normal syndication.