The LLC helps when you are trying to do things like turn on utilities. 

However, note that STR income may be considered active if you materially participate (e.g., managing bookings or tenant interactions), which could subject it to self-employment tax.This post does not create a CPA-Client relationship.

After watching some of the podcasts and reading posts I am set on starting my real estate journey utilizing the house hacking strategy.

To determine the correct treatment, consider the RV's permanence, utility connections, and business use.This post does not create a CPA-Client relationship.

The latter would create mortgage rates issues, the former will eliminate a lot of fake demand and some material real demand in the housing market that is bid side.Mortgage rates higher + build costs higher(less labor + tariffs)= Kill demand.

thanks for the guidance @Kaushik Sarkar Since it's development it will take longer to get to the exit. 3 years could be right depending on the market, if the project requires entitlements, how long it takes for permits, no major utility obstacles, etc.

When that portion was complete, I could then receive draw money which allowed me to pay my utilities, taxes, and mortgages.

That's three months of mortgage and utilities, the cost of flooring, and the cost of painting.

To address this I took detailed pictures from beginning to end of my most recent flip, documenting that we did a thorough job using quality materials.   

There are two main ways to utilize this exemption.