Given the issues you've outlined, it's understandable why you could feel anxious.

The key IRS provision that governs this is in Section 469, which outlines the passive activity loss limitations.

Equity + Profit Share: Lenders get equity in the project, but rather than full ownership, they receive a share of the profits when the project is completed.Key Elements to Include in Your Proposals: Clear ROI: Make sure to outline the lender’s return clearly.

A few weeks ago I published a post on FaceBook outlining the sale of my cabin in the Moonridge neighborhood of Big Bear Lake, highlighting how I was able to sell above list and also above the Zestimate.

To protect both parties in your partnership on a BRRRR strategy, you’ll need a **Partnership Agreement** outlining contributions, roles, and profit-sharing, a **Rehabilitation Agreement** detailing rehab work, costs, and responsibilities, and a **Loan and Refinance Agreement** specifying the terms for repaying rehab costs post-refinance.

But what you’re encouraging is that when I am 23, I should use the first 4 or so years just building a portfolio of LTR’s and then when I am 27, look into leveraging STR’s to meet the “Real Estate Professional Status” and “Material Participation” the IRS outlines, correct? 

All four of the options you outline I believe work in today's market and with the ability to refinance after a rehab, you may be able to break even or cash flow with an improved equity position. 

You're outlining the tasks before creating an SOP.

I just sent out a written notice over text, outlining the noise ordinance issue that is mentioned in the lease.

This living document generally projects 3-5 years ahead and outlines the route a company intends to take to grow revenues." - SBA