This is where you take a portion of your annual auto expenses (not just this one trip!)

Lets say I make a $50k investment into a syndication, I am 100% ok with getting a 10-12 annualized return with preservation of capital and lower volatilty / lower standard deviation versus 15-20% but high volatility and high standard deviation. 

I'm talking about the hassle and cost of annual tax compliance EVERY year thereafter: partnership tax return vs part of a personal tax return.And I was not comparing to a trust, by the way.  

For instance, if a property's T12 NOI is $500,000 with a $5 million price tag, but we expect income to rise by $50,000 and expenses by $20,000 annually, our adjusted cap rate becomes 10.6%.Yet, underwriting deals isn't without its challenges.

The Augusta Rule, known to the IRS as Section 280A, allows homeowners to rent out their home for up to 14 days per year without needing to report the rental income on their individual tax return.Originally created to protect residents of Augusta, Georgia who would rent out their homes to attendees of the annual Masters golf tournament, the Augusta Rule applies to any taxpayer who owns a home in the United States, provided that your home is not your primary place of business.How Does it Work for the Homeowner?

Even with annual maintenance inspections, I have scrubbed so much nicotene off walls. 

The three tests outlined above are applied annually, so you may qualify as a real estate professional in one year and not in other tax years.It is also very important to document material participation.To meet the requirements of real estate professional status, it’s essential to keep detailed records of activities and time spent working on the properties so you can verify your real estate professional status in the event the IRS decides to audit your return.For example, you may keep a contemporaneous appointment book, calendar, or narrative summary of the time spent performing real estate activities.

My cousin's POV was MTM would be 3-day notice to pay/quit as opposed to chasing after 1-year lessor for defaulting.MTM tenant would not need to worry about rental increase as it is regulated on annual basis in California capped at 10%.

Annual increases in keeping with HUD's fair market rents build in a stable increase in revenue.Regular inspections from the local agency provides us with an excuse to get into the units to check for maintenance issues that often go unreported and cause more damage.We love the model.

I would not think you need to go this route unless you are managing more than 25-50 loans annually, though, due to the cost.