This way, if vacation rental management becomes too demanding or isn’t feasible, you have an alternative strategy in place.Make sure to confirm that the HOA or association allows rentals at all.

It's more feasible than you think.

Doesn’t seem like a feasible plan.I am okay breaking even as real estate is a tangible asset with growth potential.

I saw how that proposal is basically her giving me a 0% loan, but at the same time I believe that structure will avoid her taking a large loss (approximately 30k if she accepts a 300k offer).I do not know why she doesnt get a PM, I only share the facts of when she purchased it, the purchase price, and the reasoning she shared with my realtor as to why she is selling after such a short time period.

Is acquiring a new primary residence and renting your current home feasible?

REPS does not relate to STR's.For short-term rentals (STRs) with an average rental period of seven days or less, you don’t need REP status to offset losses against other income.

That's two months of lost rent and utilities ($5,600) plus $2,000 in cleaning/repairs for a total loss of $7,600.

However, the depreciation claimed while the property was a rental must be accounted for upon the future sale of the personal residence, which could increase your capital gains tax liability.The adjusted basis of the property (original cost minus depreciation) will be used to calculate gains or losses at the time of sale.

I would like to pull out equity from the homes to build either a house on each or an ADU (they are zoned multi-family) depending what makes the most sense on returns and what is feasible.

It outlines profit and losses from rental real estate.