To maintain profitability, it's essential to carry out in-depth market research, closely monitor remodeling expenditures, and do due diligence on prospective properties.Preliminary Advice for First-Time Investors:Become knowledgeable: By reading books, listening to podcasts, using internet tools, and connecting with seasoned investors, you may keep up your real estate investment education.Start modest: Start small and increase your investments gradually as you acquire confidence and expertise.Network: Make connections with other investors, real estate experts, and mentors who can offer advice, encouragement, and insightful perspectives.Make a good plan: Make a thorough investment strategy with precise objectives, deadlines, and exit tactics.

Diving in on some value add opportunities with a seller carry and a 5-7 year balloon contingent on appraisal. 

I think the answer is no, that you would have to take it in 2023, which would lock your losses in as "passive" and carried forward into 2024.

I know that some brokerages carry products that honor and recognize ADU's but some will follow a "best and highest use" and consider the property itself a duplex after all that work.

Always weigh the potential rewards against the risks and costs of carrying a negative cash flow property.

But hard money lenders are really expensive so I would be very wary of carrying more than one or two at a time.

This is gonna be one of the most important factors and you have little room for error as this is how you're going to get your ARV.Budget and Timeline - Present a budget detailing all anticipated costs associated with the project, including acquisition, renovation, carrying costs, and contingency funds.

You are going to learn a lot on that one that will carry on to the next and so forth.

A LLC is just a bucket for carrying something around.

I do my own taxes with TT Premier, but I'm also a seasoned accountant and create my own schedules for depreciation and tax loss carry forwards.