The $12,000 profit from Rentals 1 and 2 would be offset by the $15,000 loss from Rental 3.Hence, the $3,000 loss cannot be deducted against your other income because your AGI exceeds $150,000.

You also must allocate all expenses based on the proportion of time spent, allocating the expenses between your personal deductions and the rental property profit and loss

If you are building to sell and your profit margins are higher for the larger units, that may be a good argument for building bigger.My rentals are in central and east Phoenix, so we have a lot of young professionals and small families we rent to. 

You're in business to make a reasonable profit without exposing yourself to liability.

I grew up with a realtor for a mother, but she’s not too well informed on new construction.As it stands today, I have roughly 70k liquid and looking to invest in building a new construction home for profit.

Everyone would like to own class A property, however, the problem is that most of those places are NOT profitable for renting.

When you go to sell, you're subject to tax on the amount of profit between your adjusted basis and sale price, not your purchase vs sale price.Recapture is NOT repaying the depreciation.

I’m curious about everyone’s thoughts on the pros and cons of mid-term rentals versus short-term rentals. profit margin on STR is getting thinner, and I’m interested in exploring other strategies.

This information is purely education to help me understand the income section of a property management profit and loss.

--> Kris currently offers a greater percentage to investors than the previous 50:50, and is now splitting profits 75%:25% where investors earn 75% and he/his team keeps 25%.