I work on a ton of Padsplits in the Atlanta market and it is tough for a 4 bed co-living property to be much more profitable than a long term tenant factoring in additional utility expesnes, padsplit fees, and additional property management expenses.

This can be very expensive and is usually the worst choice because you can't justify the cost.2.

My plan is to live there for a year then move out and rent the 4th one.  

Rental homes - especially paid for ones - are a good retirement supplement, or even plan if you have enough of them to offset vacancies & expenses.

I had a similar strategy with my first few house hacks: buy in great A & B Chicago neighborhoods....get by with minimum cash flow, and wait...What's your plan for the next purchase Michael?

If you do it right, it’s arguably the best market to invest.Purchase: $80k-$130kRent: $1100-$1500 (no rent control in MI)1% rule: .9%-1.4% rule dealsCoc ROI: 4-12%Total ROI: 20-40%Cash flow: $50-$250/door (after all expenses and budgeting for maint, capex, vacancy)Appreciation: 3-10%+ (has been double digit for a decade)Location: C+, B-These numbers are based on the “sweet spot” in Metro Detroit.

Income would be from hunting dues and timber harvesting, expense would be conservation management, taxes, and the mortgage.

An older house that had already been flipped (2022) -- all new appliances, remodeling, good floor plan.

They would be expenses for the business vs. personal expenses which would be tax deductions. 

Additionally, strong tax planning is essential, as your W2 income limits your ability to deduct passive losses.