If multi-family isn't hitting the jackpot, explore alternatives like single-family rentals for potentially higher CAP rates, or consider commercial real estate options such as small retail or office spaces.

I invested in it, and it was an interesting alternative RE investment platform.

New construction offers a unique blend of potential high returns and control over the investment, making it an attractive option for those looking to diversify their portfolios.The Advantages of New Construction InvestmentCustomization and Control: New construction projects offer investors the chance to tailor properties to meet current market demands, ensuring higher occupancy rates and returns.Energy Efficiency and Sustainability: Modern constructions come with the latest in energy-saving technologies and sustainable materials, appealing to a growing eco-conscious tenant base.Lower Maintenance Costs: With everything brand new, the initial years following a new construction project see significantly lower maintenance costs compared to older properties.Tax Incentives: Many regions offer tax benefits for new construction projects, especially those that meet certain environmental or economic development criteria.How to Approach New Construction InvestmentEmulating Buffett's investment strategy involves careful market research, understanding local real estate dynamics, and potentially partnering with experienced developers.

5) I see a lot more lawsuits against Sellers for misrepresentation, and hiding material defects.

We met all non-passive requirements and can provide proof to show that our projected annual materially-active involvement is at least 500 for 2023.We met with our CPA and he brought to our attention that we had a loss of -$107k.

Assuming I was satisfied with the results I would have to decide based on my alternatives  

As we all know material costs did go up, did contractors decide to double as well?

I have some questions about the material participation rules for the STR tax loophole.

Working with a good investor-friendly realtor would be helpful, but always keeping an eye open and looking for alternative lead streams never hurts as well.I hope that helps, but having contractors that you trust and being ready to move when the deal comes up should put you in good shape going into the spring.Good luck!

Additionally, exploring alternatives like legalizing the existing cellar apartment, if applicable, or renovating the current layout to increase rental income could be viable options.