Any tax knowledge of if people doing this strategy are able to take the losses from the cost seg study (on the ADU) to offset their W2 income?

Our private money investor had a total loss on a house fire a couple of years prior.

Quote from @Rana Zaheer: Quote from @Magnus Wikström: Hi James,I'm a foreign investor with a background in the European real estate finance industry, mostly for institutional sized deals, debt & equity / JV.I was overwhelmed by arriving to the US financial landscape and the opportunity it provides.

The financial of property is good:      DSCR = 1.3; LTV = 45%;Both my liquidity and net worth passes Chase's test.

Our reporting includes all types of financials and as much transparency as possible. 

Hi i have been trying them and a little rocky in the beginning but Ai seems to be working, ill let you know how it works as the numbers financially get populated 

Quote from @David Brooks: I've received advise that our friendly STR loophole can not be used to characterize STR income/loss as non-passive on a California tax return. 

Or just sell it at a loss… I need some guidance here, I know very little about real estate investing other than I know I’ll be losing money after maintenance and paying a property manager.

Unless you can weather a storm of bad ROI for the next few years I say you cut your losses. 

I was initially very pleased to learn that all had been able to purchase multi family properties; I was not to pleased to learn that they all “wanted out”, but felt they were “upside” down and would have to take a loss.