Put the profit towards a new Primary residence and ~$50k towards a rental property.2) Rent it out and eat the cash flow loss, hoping rents increase.

DSCR works pretty cohesively with hard money, especially when you use the BRRRR method since it allows you to increase leverage on the back end refi. 

I am getting increasingly serious about purchasing an office building here in Denver in the next few months. 

@Coty LeBlanc I originally used it as a set it and forget it tool and it was better than not having I suppose, but then I really dug into training and learning and I saw 50% increase in one property and 20% in the other.

You are required to file a complete and accurate return, which means reporting the income that you earned along with atleast the direct expenses that you incurred on your rental.There are two comflicting forces - Your tax accountant wants to be aggressive with deductions because it will entitle you to paying less taxes(now or in the future).Your lender wants to see as much income as that will increase your Debt to Income Ratio(DTI).The good thing is that you can speak with your lender about 'one time expenses', that were only incurred in that year and are not reoccuring. 

The hot tub was just for the luxury of having it, but we justified the purchase by increases the AirBnb nightly rent.

I am currently moving through my first assignment of RPA escrow period and all of the seasoned people who shared their "assignment of agreement addendum" experiences and insight has given me the confidence to know I am moving in the right direction and taking the correct steps in order to close this transaction correctly. 

I do not think they are sketchy is just that they do not go by all of the state regulations and they might charge you a cancellation fee or increase rates more often.

In those situations, focus on value-add opportunities—like rehab, repositioning, or optimizing expenses—that can increase the return on your investment.Keep in mind, the 1% rule is just a quick filter.

I own 5 other properties in Gilbert within 2 miles of this property and I'm very confident in this area long term.