To get strong suburban core with a good B to A location typical is 2 million and up in price.

If you are brand new, drive around and make notes of just a few properties that might be looking to sell based on their upkeep.

@Shane Pearlman, did they say directly that the highest and best use of the property would be to subdivide into 3 lots and that their valuation was based on that?

@Joshua Thompson already linked the long post that I wrote to answer your question:https://www.biggerpockets.com/forums/51/topics/1215989-expla...Based on your subsequent comments, you missed the point of my post: it DOES NOT matter whether your accountant holds a CPA or an EA designation (or neither of those two).

Here is an article that discusses it somewhat. https://www.parealtors.org/blog/appraisal-changes-coming-for...So, some finished spaces are not not counted as part of the GLA based on a standard, which is fine.

I'm based in Tampa, happy to connect with you. 

It sounds like there is some scale in the deal for a fix and flip, but you would surely be way out ahead of your skis to do that based on what you said.

Your property might be a little hard for MTR based on that layout, but again the garage could be good for storage for home sellers who sold and don't know where to go as well.

Family services will inspect the home and limit occupancy based on the number of bedrooms.

If not, even though you are a re pro, losses are passive & deductions are limited.There are 7 scenarios that will qualify as material, and you only need to meet one:*500 hours*Substantially all participation*> 100 hrs and at least 1/2*Significant participation*5/10 years*Personal service activity w participation in last 3 years*Continuous participationTo materially participate, you must be involved in the operations of the activity on a regular, continuous, and substantial basis.Once you pass the pro test, the material participation often comes along for the ride.You can elect to aggregate all rental real estate for purposes of measuring material participation under Sec. 1.469-9(g).Your time spent on all your rental properties (STRs don't qualify) counts as one activity, making it easier to materially participate.In order to make a strong case with your CPA and the IRS you need to document your hours.Best practice is an hours log where you are as specific as possible.