Details here- https://www.biggerpockets.com/renewsblog/2014/01/04/leveraging-really-risky/. 

I could spew more details, but it would help to know more about your age.

Quote from @Jaycee Greene: Quote from @Dave Bobka: That's right, been eyeing all of those as well was Fort Wayne, INWhat about something like this in FTW: https://www.realtor.com/realestateandhomes-detail/3207-Clint...?

thanks a lot a very detailed information!

I would recommend consulting with a tax professional to gather more details to confirm this based on your situation.

Meeting the 100-hour material participation rule qualifies your STR income as active as long as no one else participates more than you, This will allow losses to offset W-2 or other active income.While there’s no official IRS form to track hours, maintaining a detailed log is essential in case of an audit.

Any way you can make extra income to throw at the 40K CC before selling? 

@William Weston You don't have to house hack, but if you could fit your family of 5 in a 3BR unit, would this work: https://www.realtor.com/realestateandhomes-detail/8104-Chesw...?

I would get more details on the numbers and go through it with an experienced investor. 23% expense ratio is laughable for any apartment building, let alone an old class c product.

I’d appreciate your perspectives.Here are the details about our current home:3/2 Class A property in a middle-America town with historically ~1% annual appreciation.Purchased in 2020 for $200,000 at a 3% 30-year fixed rate.Remaining mortgage: $150,000.Estimated value: $270,000 (based on recent sales).After selling costs: Likely $100,000 in net proceeds.Rental potential: $2,000–$2,300/month.PITI: $1,200/month ($700 mortgage + ~$500 insurance/taxes).Maintenance/CapEx/Vacancy (20%): ~$400/month.If kept as a rental:Net cash flow (self-managed): ~$500/month or ~$300/month with property management.Low appreciation potential but ~$400/month in principal paydown.Considerations:What’s the additional overhead of managing a second rental property remotely (3 hours away)?