However, note that STR income may be considered active if you materially participate (e.g., managing bookings or tenant interactions), which could subject it to self-employment tax.This post does not create a CPA-Client relationship.

Which material is best?

The projected returns often don’t materialize in real life.Appreciation Is Misleading in Low-Value MarketsWhile values in these areas do rise, the percentage gains are deceiving due to low starting values.

Rehab costs and ARV (After Repair Value) are key parts of evaluating deals, so it’s great that you’re diving into these concepts early.For rehab costs, creating a rough estimate starts with understanding the scope of work and local pricing for materials and labor. 

I will also say, I expected over a year and a half going into this, based on my information and research at the time, knowing about permitting and material delays in the area. 

If you research recent sales you can always provide the appraiser a list of those sales.One of the best ways to insure a higher value is to update the property using materials and fixtures that are popular and common in the area.

We have had two homes broken into and materials stolen recently.

The fire prevention policies were different, more aggressive, so far less imperative reasons to sway away from a then amply supplied and I imagine price adjusted material of shake vs fire resilient material. 

I'm going off the understanding that you still need to spend 500+ hours in the business to achieve material participation (please correct me if I'm wrong). 

Focus on tax-saving strategies such as cost segregation studies and bonus depreciation to accelerate deductions.By qualifying as a Real Estate Professional (spending 750+ hours annually and materially participating), you can offset your wife’s S-Corp income with real estate losses, reducing your tax liability.