Quote from @Greg Scott: Quote from @Derrick E.: I always play it by ear.

@Kyle Carter just because a building has all section 8 tenants doesn’t necessarily mean that the cap rate will be higher on exit but it might attract a buyer(s) that are focused cashflow and not appreciation; therefore a lower price to juice the yield.One of my non negotiables if I were you would be to only buy in an area that is desirable.  

Quote from @Fareen E.: Quote from @Jaron Walling: Follow your lease.

If you are not Materially Participating, the loss will be reported on Form 8582 and like be classified as "Unallowed".The ordinary loss from Schedule E cannot offset the Schedule D capital gains. 

I got this e-mail too.

I googled it and found this:If you rent it to tenants, you would treat it as a rental and report it on a Form Schedule E.

Quote from @Rebecca E.: @Katie MillerI came here because I just had my yearly with my new accountant.

E Equity, how much of the home will you own on day one.  

That comment also seemed to imply that you don't report the rental on Schedule E if you have an LLC, but that's not correct, with a single member LLC it still goes on Schedule E."

You can however, write off the other unit as a rental on a Schedule E.