This could be a share of the profits or equity, typically in the 20-30% range, depending on the complexity and the workload.

This can yield high returns but comes with more complexity, like managing operations, employees, and industry-specific risks.

It was a wild ride for him, especially in the first year, but seeing guests enjoy the space made it all worthwhile.Given your engineering background and rehab experience, you're well-equipped to handle the complexities.

And I would probably look at the smaller houses where you can keep your unit costs down but still rent them at a higher price point relatively speaking. you are arguing one asset class. build a new hotel anywhere in America on any soil it's better than any apartment complex you can own. lower cost per sq ft than type 1 buildings and higher exit. we just ran into that and hotel is way better use after a rezoning application got declined for apartments. hotel is looking much better 

Great point on the differences it can make wrt the more complex structures.

To add an additional layer of complexity I am under contract to buy land and build another STR.

Hi Folks,Need some clarification on this complex topic.There is a lot of discussion on these tax nuances in BP forums, so I am happy to read any particular thread you can point me to.Basically I have a W2 (above income limits) and I am a General Partner in a multifamily deal.I have received 2 K1s from this deal (one as a GP) and another as an LP (since I put in some of my own money).Am I allowed to take the K1 losses from this deal to offset my W2 income?

As @Kyle J. described, you're adding a lot of complexity (and closing costs) on a hypothetical. 

For residential - just making it more complex come tax time.

Short-term rentals can offer higher returns but often come with more management complexities such as higher turnover and seasonality.