It's been an awesome strategy for us.

However, co-living allows you to acquire properties with as little as 0%-5% down, drastically reducing the amount of cash required.Instead of needing $100K+ to buy a rental, a co-living strategy lets you start with a fraction of the cost while achieving higher returns.3.

With this strategy, we knew exactly how each house was operating and we could intervene or change leadership of the house if necessary to assure operations were going as we expected. 

I am not sure I agree with that strategy.

They must satisfy "material participation" test for their STRs to utilize the strategy.

From there I would ask about their strategy and potentially their hardest lesson learned. 

I wouldn't recommend setting up an LLC out of state if you are buying in Tennessee unless your tax advisor is looking to help you on strategy.. but from a numbers standpoint, it really doesn't make sense when you start adding up on all of the annual LLC reporting fees from different states and then it starts cutting into your cashflow.

It was strategy, patience, and knowing how to find and execute the right deals.

Some operators really need better training and education and drag down the great operators who are doing it right and offer a great service and product.

For those who’ve used it, what strategies or sources have worked best for you when covering the difference between your loan and the total project cost?