As you buy more, that will change. 

@Alex Schumer I see that your new to real estate - congrats in this life changing journey.  

Currently changing my mindset of I can’t do that, to how can I? 

No, you cannot create phantom losses this way.Some additional issues that we have not addressed:- holding rentals inside an S-corp has many tax disadvantages- you will likely jeopardize your $250k/$500k capital gain exclusion for homesteads- you will lose asset protection afforded to personal residences by most states- you will lose your homestead exemption for local property tax - your insurance will have to change from owner-occupied to rental, i.e. go up- and there's moreConclusion: there're reasons why nobody is doing this clever "strategy" but A+ for trying.

All 1300 aren’t going to stay forever, but I promise you a few are going to stick and change the landscape.

Always good to check before you cash out the 30-35k, which I honestly would not do with the drastic change in PITI, numbers would be tight even if you rent out the unit you are currently staying in.

Thankfully, we caught it during the plan review stage, and with a stamped structural design, they got the kitchen of their dreams—without jeopardizing safety or facing surprise delays.Here’s what to think about when renovating:Structural Changes: Even moving a wall can have ripple effects on the stability of your home.HVAC Systems: New layouts might need adjusted airflow or ductwork.Plumbing and Electrical: Moving sinks, showers, or outlets requires careful rerouting to comply with building codes.Before starting demolition or submitting permits, have your plans reviewed by a licensed engineer or architect to avoid costly surprises.

Nothing changes the fact that using leverage increases risk, not decreases risk.  

Life changing for him.

And you can be a landlord that gets a very poor return because they haven't utilized their space well by changing the layout.