You’ll also pay transaction fees disposing the asset, likely in the $40k+ range.I don’t think you have a clear-cut answer here, but you’ll need to rack up all the financial trade-offs to make an informed decision.

The biggest trade off I have heard from someone (also not a CPA/tax advisor) that qualifies as REPS is upon sale, you no longer have long term capital gains, but rather active income.  

This leads to the problems worsening, and I end up having to hire an emergency technician to handle the repairs.

When I added all this up, it was going to cost $150k in a neighborhood where sales comps trade for $100k per unit.  

All of these required trade-offs though.

You could then get a HELOC/LOC on that paid of property (a product that doesn't require you to use it) and then if you did have a big emergency you had a line to use on it.Now, ALL of this is dependent on how much money you have in the bank, how many properties you have, what your income will be like in retirement, what the standard age would be for your end of life (that's a scary one to think about), and while yes, you can certainly take equity out I just think it would be good to sit down with a financial planner...or even some other investors that are local to you that are around your age demographic and see what they are doing.I'm glad you are thinking about this for sure.  

Hi Sharad, if you're looking to invest in small multifamilies and want cash flow, you're going to have to trade this off by the type of neighborhood that you'll be looking at.

They seem very similar in that they handle emergency and non-emergency maintenance calls and, critically, even dispatch contractors/service-people with minimal intervention from me.

The exception is the Association may, “…authorize such services on the Common Areas as it deems appropriate for the enjoyment of the Common Areas or for the benefit of the Members.”Section 5 – Nuisance – states, “No noxious or offensive trade or activity shall be carried on upon any Lot … which may be, or may become an annoyance or nuisance to the neighborhood, or which shall, in any way, interfere with the quiet enjoyment of each of the Owners of his respective Dwelling…”Feel free to think, “you fool!

If you didn't, seems like a bad / inexperienced accountant to suggest such a thing.In my opinion, its the same as telling someone to go to a trade school and get a new career.A STR can help you lower your taxes but I would only do it if you were planning to purchase a STR.A STR is a business, you are responsible for furnishing the house, responding to guests, providing a great stay and experience, etc