I always used your number three as my prime focus when I started doing short-term rentals twenty years ago, before Airbnb existed.

@Alexander WilliamsWelcome to Bigger Pockets! 

Obviously if you acquire your deals based on this assumption and ended up operating better than it's more money in your pocket. 

I am always happy to help a Military Veteran and a Bigger Pockets member!

We are looking at investment properties in Brooklyn, and found one we liked and want to add an additional floor (two stories as of now, would go to three), but the zoning is M1-2, which is commercial.  90% of surrounding properties are multifamily residential as well.

Three out of four problems can be solved by screening the right tenants in the first place.

.- We don't cash flow at all because we were bullish on the BRRRRs and also did some flip rehabs using some of that equity and pocketed it years ago. 

I have a lot of investors who BRRRR and they typically stay in the outskirts of Austin - there are certain pockets that have great BRRRR #'s like Kyle & Manor. 

If you ask about a city in Kansas and three agents from Kansas answer and all have some call-to-action, they have business to gain from their answer.

"Is it a common practice to report it as a loss even though I fixed it out of my own pocket?"