However, passive loss limitations apply—if your AGI exceeds $150K, you may not be able to deduct the full loss in the current year but can carry it forward to offset future passive income.Future Considerations: If the property generates taxable income in later years, Kansas allows a credit for taxes paid to Missouri, but since you’re reporting a loss, this doesn’t apply.

I looked at their books at that is their actual expenses at this point.

I have been leaning toward acquiring existing assets as new-build in my area is about as expensive as existing assets AND it takes years to spin up until cash begins to flow.   

Quote from @Krishnan Iyer: Hey Tom, I use Stessa to manage all my income and expenses (bookkeeping) for all my properties.

.💡 How do you keep rehab costs under control and avoid surprise expenses?

I would ask for proof they paid what was owed in the judgement for that eviction.

Now I am considering whether to do a cash refi on the free and clear, and use a Heloc to purchase another duplex that is more expensive.  

So if your parents paid $40,000 for the property and today it's worth $500,000....your basis "value" in the property will be their 40,000. 

Most hosts in Chicago just pocket the full funds from direct booking, you would be in the very very small majority if actually paid city taxes on it.

Quote from @Gabrielle Cutler: HI there,That’s partly why I’m on here, I’m not quite sure the best route, especially living in the Bay Area where everything is a bit more expensive.