You was a little fast on the trigger to go scorch earth.

Thank you so much @Greg O'Brien, I just bookmarked this thread, I stayed up until 2am last night trying to find answers to this, confused by different professional opinions and IRS publications.I'm trying to use STRs (rented out 7 days or less with no substantial services provided in which I materially participate) to reduce my W2 liabilities and my biggest concern was if doing this will trigger Self Employment taxes.If I understood correctly, in this situation I can use depreciation losses as active against other active income (which is what I want).

You are a local investor with a couple properties, not a conglomerate, and you are looking to get one more and the open market is dry.

I simply thought putting it out there in the Forum might keep someone from unknowingly buying something that might leave you out to dry.

Obviously you'll want to check the math on all of this before pulling the trigger. 

When a property is sold it triggers an inspection to get the property up to code.

If you receive any boot (like cash or non-like-kind property), then some of that recapture could be triggered and taxed.

If both the mortgage and title are in your and your wife's names, setting up a multi-member LLC with both of you as members might help avoid triggering a property tax reassessment (some counties do that) since it shows continuity in ownership.

Some questions I ask myself before pulling the trigger:1) In 1 year, would I make at least double of what I invested into this- or any- coaching program?

Hey Michael, My understanding is in a preferred equity syndication, utilizing qualified funds such as those from an IRA or 401(k) can trigger Unrelated Business Income Tax (UBIT) when the investment generates Unrelated Debt-Financed Income (UDFI).