If they work independently, set their schedule, and use their resources, they might qualify as a 1099 contractor, but misclassification risks IRS penalties.Wages for W-2 employees and payments to 1099 contractors are both deductible business expenses, but compliance is key.This post does not create a CPA-Client relationship.

Are their listings detailed with good-quality photos?

@Travis Boyd The quality of the neighborhood will affect the cap rate to be used.

During the peak season you have to make your money when the slow season is so much less.I do have events where the prices are expected to be high due to supply and demand.I do see some of the dynamic pricing days as being rediculous and your going to miss out on the early bookers looking for a fair price.

However, due to high property costs in our local market, we have been exploring opportunities in more affordable states, including Texas, Pennsylvania, Michigan, and Ohio.

And here is why:Real estate is all about relationships. 

Here’s why lease options are a game-changer:🔹 Low Risk, High Leverage – Instead of buying a property outright, you lease it with the option to purchase later.

They are usually looking at C or D properties that local agents tell them will “cash flow“ They usually don’t cash flow because of high maintenance and vacancy.

@David LewisRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Great reason for not pulling deductions forward.I have been retired from a W2 job for some time and my income is at an all time high and will just keep going up with more RE investments.