I'm in a safe community where crime is low, so we don't have to worry about squatters, missing appliances, etc.

I ran into this recent TurboTax article  that led me to believe it was possible: Second, you may have a net operating loss (NOL) if the Section 1231 loss is large enough to reduce your other income below zero.

Also, if I bought a fridge, washer, and dryer, how do I expense these appliances? 

Given that this website invented the term "house hack," it's only appropriate that BP as a business pull off an "office hack" - and btw, yes, the financing is better for owner operated offices, as well) that blunts much of the risk.We all know folks that purchased lots of SFRs in the aftermath of 2008, I also know some folks that purchased offices in the aftermath of 2008.

@Jessica HowellIn the operating agreement we typically put like $1,000 as initial contribution.

I have several single-family homes here locally, operating as short-term rentals and long-term rentals.

Verify the purchase price, potential rental income, and operating costs to determine whether it’s truly profitable.Understand Debt: Taking on $500,000+ in debt is a serious commitment.

Would you be open to a quick zoom / phone call so I can ask a few more questions on how you run your operation? 

It also is helpful to have a California LLC in case you ever sell that property and move into another state so that you do not need to form a new LLC altogether with new operating agreement, just re-register in the new state as a new foreign LLC.

Appliance Maintenance/Replacement: When needed, usually the owner’s job unless the tenant misused the appliance.11.