These are expenses incurred before your business is active, and they typically aren’t immediately deductible in full, as they are considered part of starting the business rather than ongoing operational costs.To provide more detail, according to IRS rules (as seen in the screenshot), you can deduct the lesser of $5,000 or your total startup expenditures.

The potential NOI and cash flows seem to be roughly double what a comparable ‘vanilla’ multi-family would be at the same purchase price (such as a 3-unit apartment building).Many of the 14 bedrooms had not been fixed up in decades.

When you see real estate agents in the forum asking for business and providing no value or proof of value, the value proposition should be obvious.If you want to work with investors, find my other post in this forum.

I have 3 mortgage payments and enough cash reserves to cover all expenses for 2-3  months without tapping into personal savings.

Multifamily, storage units, and commercial properties are all solid ways to generate long-term income and cash flow.

I think that down here, you will find more neighborhoods that are transitioning for the better that you can add value to and get cash flow as well as appreciation. 

Purchase price: $167,000 Cash invested: $8,000 My wife and I bought a duplex in 2019 -- we got an FHA loan and negotiated the seller to pay $8k towards our closing costs.

We purchased the property for $793,000 in 2020 for cash, and then financed a mortgage for building the second house later that year for $450,000 at 3% on a 30 year.The property is worth about $1.8m now, with a mortgage balance of $420,000.  

Purchase price: $205,000 Cash invested: $27,112 Bought for $205,000 in the Maine-Endwell school districtMonthly rent (pro forma with 3 month stabilization) $4,800Taxes: $9,238Insurance: $2,642Gas/electric: $0 Water/sewer: $2,451Total expenses: $14,280 I used a conventional 10% down.

@Jason ScottI would also take the higher rate and put less cash at closing as the delta as mention is $50/mo which means as long as you refi in next 4 years then taking the credit was the better choice.This is assuming the $50/mo does not have a significant impact on you and your finances.