Once that happens, the legislature may try to create even more draconian measures.   

This safety measure aims to prevent structural failures and ensure tenant safety.Originally, the first inspections were due by January 1, 2025, but a recent update—AB 2579—has extended the deadline to January 1, 2026.

Thanks for the tag JC,Without reading this thread in much detail all I can say is this.I find it very hard if not impossible for out of state (Or country investors) to successfully invest unless they are going directly to a turnkey operator that has in-house property management.I see Roofstock as the "turnkey" Zillow or the MLS.They have some decent due diligence measures in place but it isn't enough in my opinion.It's easy to buy (Or for someone to sell you a house).It's hard to manage it and make it perform long term.Reputable and TRUE turnkey providers can do the latter part very well.Plus, wouldn't you want someone vested in your long term success?

Highlighting the strong profit potential and taking measures to address any concerns about costs, scope, or holding risks will make this an even stronger pitch.

Neither of these properties is a median-type homes in Memphis, no matter how you measure. 

@Jin ZhangI would only measure pros and cons against a goal.

With a full year, I would target either of those tests instead of test #2 (substantially all) because tests #1 and #3 have quantitative measures to hit and, as a result, are less subjective.If the property is acquired and placed in service in 2021, but you do not materially participate in 2021, you can still take bonus depreciation on the personal property from a cost seg study in 2021, but the STR activity would not be nonpassive (because you did not materially participate).I don't have all the facts about your tax situation but if you or your spouse (if you are married) do not qualify as a REP, a passive STR activity will not allow you to deduct the loss generated from bonus depreciation against nonpassive income.

After all, square footage is about more than raw measurements; it’s about how seamlessly the space integrates into the home’s overall living enviroment.If you’re serious about making that office “count,” consider checking local guidelines or even chatting with a reputable appraiser in the Phoenix area..from what I’ve heard they’ve handled properties like this before.

@Chirdeep BhutaniCap rates are a good starting point but are only a single measurement of an investment.

Does anyone have any idea how to calculate or measure risk on something like this?