In a competitive market, it is a real disadvantage to be seen as a "skeptical" or "needy" buyer.

Of course, back then (in the 90s) there wasn't any real internet or Bigger Pockets to get advice from, so I had that disadvantage, but nevertheless I made a poor decision by selling in hindsight. 

Despite what you might read on this board though, it’s a rare lender that wants the property.One of the many disadvantages to agreeing to a DIL is that your friend will have to pay taxes on any amount that the lender forgives over $600.

Hey BP Community, I'm wondering if there are advantages/disadvantages from getting a HELOC from a local bank or a mortgage company. 

But good ones are still out there.if the seller is represented and you're not, I think that puts you at a disadvantage... at least for your first purchase or two.

I will say for the benefit of public discussion that your product looks compelling but the inability to just sign up for a free trial without filling out a form and waiting for a callback really puts you at a disadvantage to almost every competitor.

@Tanner MartilloReal estate investing presents a range of options, each with their own advantages and disadvantages.

There are advantages and disadvantages to both strategies when deciding whether to invest in-state or out-of-state.In-State Investing:Knowledge: You probably know more about the rules, legislation, and local market in your own state of Houston, Texas.Network: It's possible that you already know contractors, real estate agents, and other people in your community.The Ease of Management: Especially when dealing with daily problems, managing properties in your neighbourhood may be more convenient.Out-of-State Investing:diversity: If your local market is competitive, investing in a different state may offer greater prospects and diversity.Affordability: As you pointed out, certain states could have more reasonably priced real estate, which might enhance cash flow.Market Dynamics: There are markets with varying development potential and economic trends that you may access.Taking Out-of-State Investing Into Account:Investigate the target market in-depth, paying particular attention to employment growth, economic data, and local real estate market patterns.Establishing Networks: Establish a local network of contractors, property managers, and real estate experts.

He suspects there is some kind of relationship between the two which put  my friend the landlord at a disadvantage.

Thanks for the responses everyone, the confusing part to me was if I use the deductions against active income year 1 since STR's are an active business, but then switch to LTR's year 2 which correct me if I'm wrong can't count against active income- if this in some way has a disadvantage with recapture, etc. since the STR business would no longer exist