This is a great strategy for high income earners as they can purchase a short-term rental get a cost segregation and slam a huge loss through to offset current years income. 

Depending on how much you make for your W2 income, those losses are deductible, phased out, and not allowed at all.

I'm also a fairly new BP member and looking forward to sharing your vision!

A 2-block difference could be the difference between appreciation and loss.

Do you expect a loss?

That was assuming you qualify to take the entire loss in 2023. 

If I assume NO property value change, in 30 years, the WH property will have turned $383K (down payment plus $800 monthly negative loss of running the property) into $459K.

So if we underperform the pro forma and we end up losing up to $100k on the deal, he would share in that $50k loss and I would eat $50k of the loss.Is that what you mean?

Hope things improve moving forward for you and in the grand scheme of things, $2600 loss I would just chalk up to a lessons learned and one you can continue to teach others about in the future.

My passion is real estate, and my vision is to be a full-blown Real Estate entrepreneur.