I also can provide context of what characteristics each area has.

So many folks will scream that buying negative cash flowing RE is "gambling".

It was definitely a gamble, because I was assembling furniture up until the night before their check-in :o I only had an opportunity to advertise on FF, because it was the first place we posted and it got enough inquiries right away.

The funds may feel safe, but they are likely not as safe as doing your own work.My fictional, perfect fund would have characteristics like the following: - Double digit simple interest yield.- Uses no or very, very little fund leverage (LOC for less than 20% of fund equity)- Lends in one specific location/region that fund managers have deep operational experience in and which has speedy foreclosure laws. - Multiple unrelated fund mangers with deep experience (so one can't get hit by a bus)- Lends at conservative LTVs, stage-gates release of funds based on project milestones.- All loans are in first position, with senior rights.- Lends only to experienced borrowers- Has good liquidity - 1 year lockup or lessThe problem is that no fund meets all of these criteria.

It's more gambling than anything else.

These are just generalities --- each market has its own unique characteristics.

Hi Adam, Since the immediate area may not have many comparable properties, consider expanding your search radius to include neighboring areas with similar characteristics, such as proximity to amenities, major roads, and parks.

Having an LLC does not change the characteristic of the income.If the activity inside the LLC is a rental property, the income / loss will flow to the members / partners as rental income / loss in which case, it would be deemed passive.The member may be considered active participation in which case, there may be an exception to take up to $25,000 of losses.

However, the vacancy is really low in my area and prices are really high so it’s a gamble most house hackers take.

It is important to consider the specific market characteristics of specific locations, such as the northeast coast of Florida and Savannah, Georgia.