It would be great if progressive views/laws on reducing minimum square footage (residential/single family on foundation) were indeed the case in Indiana, and will to catch on (re-evaluating minimum size of homes) elsewhere.

Putting all this action into a partnership tax return reduces the risk right back down to an acceptable amount.Second, with a partnership tax return, we can mechanically show your capital contribution (at-risk money) including recourse loan debt.

A cost segregation study may be beneficial to help reduce your current taxes. 

Personally, I prioritize land lord friendly states because this significantly reduces risks.

If you buy the right property you can even reduce the new COR rate if you apply some of the NOI cash flow to the higher rate payment each month.Similar to a Bi-weekly payment it reduces the years owed and the overall rate by accelerating the payoff.

Giving reduced rent to someone who will be enjoyable to live with while treating you and your space with respect is worth it.

Yes, asking for reduced payments, no interest, no payments, etc are great ways to make a deal cash flow much better...I have used...

So, it will reduce your net income and therefore your taxable income.

The rationale is that Airbnb provides host protections and guest verifications, thus reducing your risk and need to do your own background checks.

So if you have no other passive gains you will not be able to have a passive loss reduce your income.