Hello Adam, The way I draft our contracts in Pennsylvania I include a clause that requires the tenants to carry $10k in personal property and $100k in liability.

To reduce FICA liability, consider maximizing profit-sharing contributions instead of excessive salary deferrals.

For liability purposes our financial advisor is recommending creating a LLC for managing all of the STR stuff.

My primary goal is to find the most cost-effective solution that minimizes tax liabilities, including avoiding property tax reassessment and maximizing the step-up in cost basis. 

Any store renovation could significantly increase tax liability, currently at $142,000 per year based on its $4,966,600 valuation.- 50 Cambridge Street (Price Chopper): Spanning 67,814 square feet and built in 2003, this store is valued at $11,289,700, resulting in an annual tax bill of $323,000.- 72 Pullman Street: One of the newest and most modern supermarket locations, valued at $10,177,000, which at a tax rate of 28.61 per thousand results in an annual tax burden of approximately $291,000.- 221 Park Avenue: A 37,090-square-foot store valued at $5,833,500, resulting in an annual tax burden of approximately $167,000.

I would for NOT do tree houses for liability reasons.

Imagine making millions of dollars over the course of your career and then having to pay 30-50% every year to uncle sam instead of compounding that cash over time.This is exactly what real estate professionals have learned to mitigate.To reduce their taxable income, they just buy a building every year, do a cost seg, and use depreciation to reduce their tax liability dramatically.Their personal wealth snowball grows much larger and much faster than their W2 counterparts who give most of their money back to the government each year.Following this strategy as a real estate professional is one of best ways to end up with a much larger net worth at the end of your career.

From a liability perspective I am anti-glass tops ever since, there way too many other options.

If the ADU doesn’t meet IRS guidelines, you could face capital gains tax liability.

Make no mistake it isn’t quick or especially comfortable but it can definitely be profitable.As for the rent a room thing in most locales I have to wonder if the additional rent is worth the hassles of dealing with the increased time and liability of multiple tenants in one property but that’s a totally different conversation.