The value of the hotel is based off of how well it's being operated.My advice would be to get a job in the hotel industry.

Other risks, the contractor walking off the job, a storm hitting and delaying the project for weeks, someone breaking into the home and stealing stuff (which happened just the other day to a client of mine), a squatter, or drunk driver driving into the house (happened a lot at my old job as a firefighter lol).

I'm not sure if we can like to articles on our own websites here, so to be safe I'll just suggest the IRS web page, which does do a pretty good job of explaining the basics: https://www.irs.gov/taxtopics/tc510The main thing to know if you're going to claim business miles is that you do need to keep a log of every business trip. 

@Dominic Holt , I am happy to review your scenario and suggest changes that could improve your property.

We've got strong job growth (tech, healthcare, education), stable population growth, strong rental demand, and plenty of value-add opportunities in multifamily.

California offers great job markets and weather, but comes with high costs. 

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Unsafe working conditions: If the job site is unsafe and it’s not fixed, then the GC can end the contract.

Then you have all the TV shows that glamorize flipping etc.. so its no wonder there is so much interest in real estate right now.Then you have the I quit my day job to be a full time investor..

As long as you focus on areas with strong job growth and analyze the deal carefully, I think you will be in great shape.