Hi Max, a good rule of thumb is to start with your target market/ideal guest.

I will not comment as to the tax laws and underlying rules - that is a discussion you can have with your tax advisor who presumably you are paying to help you.What I will do is provide practical and business guidance on tracking time.Firstly, there are apps available that can assist with time tracking where you can specifically detail your time, who you met with, etc.

If it's an HOA-based one, or has some other deed restriction, get out of the position.

I would not categorically rule out a triplex and/or quad plex though...

On top of that (even with the insurance rate increases here) it STILL almost hits the 1% rule in terms of cashflow.

Don't focus on a "rule of thumb" as a rookie.

.- The golden rule in my group is the seller has to have a deal, the numbers work, be willing to sign, be willing to move out no later then 7 calendar days prior to the auction!!!!! 

I’m looking to take advantage of an FHA loan and the 2-out-of-5-year rule for my first investment.

Once you go above $125k/unit you start to get into the high end areas that won't have very good rent/price ratios and are under the 1% rule mark for turnkey stuff.Neighborhood wise in the city the "East End" is where the most expensive real estate is since that's where the universities and a lot of the hospitals are located.

It's a super affordable real estate market where you can still find deals that hit the 1% rule anywhere from $120-180k purchase price.