That strategy, however, is going to take a lot more up front work than just posting a bedroom for rent for $900/month (or whatever the going rate is in Richmond) on airbnb and FF.

They got into escrow, and then the tenant started to create a real challenge for the seller and ended up taking them to court for performance/lot line issues on the property.

The original goal, rightly or wrongly, was to maximize rentable units, so we rebuilt the main house from the foundation up into a 3 bed 2 Bath 1,600 sq foot main house, and added a 600 sq ft 1 Bed 1 Bath JADU, along with a 1,200 sq ft 3 Bed 3 Bath ADU.

I would love to meet up and chat!  

Mortgage Balance: $430,000 Monthly Mortgage Payment: $3,100 Current Rent: $4,100/month (below market rate, planning to gradually adjust it during yearly renewal to eventually catch up to the market rate) Appraised Value: $900,000 (purchased for $657,000 8 yrs ago) Managed by a property manager Loan assumableProperty B: Located in VA.

If I would have bought a sustained portfolio with multiple units rather than starting with a single purchase I truly believe I would have lost a lot of money while my systems flailed rapidly attempting to catch up. 

(check page 7 of this IRS Pub)Something that's non-passive and you materially participate means you can deduct those losses up to the excess business loss limit. 

More syndicators go out of business and wind up in foreclosure and/or lawsuits to enforce loan guarantees. 

How did you come up with $715,000?

When I attempted to do a similar flip in another county in Texas, where I was unfamiliar with the nuances of the area, my “slam dunk” deal ended up as a $40k loss!.