The real art of underwriting is understanding that all the inputs are merely probabilities and deciding whether or not you can sufficiently offset the risks.

. - Diversification of risk and reward. - Accelerated growth through combined efforts. 2.

If not, all I see is risk with no reward.

Whether you’re a new investor or a seasoned pro, the competition is fierce, and the best opportunities often seem just out of reach.That’s why BiggerPockets is teaming up with DealMachine to bring you the Off-Market Deal Finding 5-Day Challenge—a completely FREE event designed to help you find your first (or next) off-market deal FAST.Here’s What You’ll Get:📅 3 Live Sessions led by Matt Kamp, VP at DealMachine and a real estate investing expert who’s helped customers close over 15,000 deals.🎁 $2,000 in Prizes just for joining the challenge!

Alas, this scenario didn't last very long, as you would expect in a free market capitalist society -- new money flood in, more STRs in supply, property prices increase, STR incomes decrease, until a new equilibrium is achieved.Nowadays, the word STR is being used to describe both the property and the business.

Sell the house you are in now and take that money tax free (if you've lived in it for 2 out of the last 5 years.2.

This can provide a better depreciation benefit than traditional STR real estate.If permanently affixed to land, it qualifies for real estate depreciation (27.5 years for residential properties).Considerations:Zoning laws and campground restrictions may impact legality.Self-employment tax risk arises if you provide substantial guest services.Vacation home rules apply if personal use exceeds 14 days or 10% of rental days, limiting deductions.Audit risk is high, so keep detailed records of participation, expenses, and rental operations.Given the potential tax benefits and complexities, consulting a real estate tax professional is advised to ensure compliance and maximize deductions.This post does not create a CPA-Client relationship.

@Zachary JensenThe originalPost “ why wouldn’t an accredited investor invest with no risk….”Why is it that people think there is no risk in real estate.

As far as home office no longer being an IRS "red flag" I guaranty that if you put a home office deduction on a personal return on Turbo Tax it will move their audit risk needle.

If you're interested in learning more about the market or want to discuss potential opportunities, feel free to reach out.