Hi Josh, Additionally, consider building conservative assumptions into your financial projections to account for potential market fluctuations, economic uncertainties, and unforeseen challenges.

With local home and land prices so expensive, I'd like to explore building a Tri or FourPlex on the back half of the lot. 

Keep learning and networking with other investors, and begin to explore more partnership-oriented investing.

These include reporting rental income, allocating expenses between personal and rental use, and navigating new limits on mortgage interest and property tax deductions under the Tax Cuts and Jobs Act of 2017.In places like Hawaii, STRs are subject to additional taxes, emphasizing the importance of understanding the local tax landscape.

As long as the total income reported on your tax return matches or exceeds the total income reported on your 1099s, and you have documentation supporting the breakdown of income by property, the risk of audit or inquiry may be relatively low.Pros of the approach:Compliance: Helps ensure compliance with IRS reporting requirements by matching the total 1099 income on the tax return.Risk mitigation: Reduces the risk of IRS flags or inquiries related to unreported income.Cons of the approach:Complexity: Requires additional documentation and statements to reconcile the reported income with the 1099s, potentially adding complexity to the tax return.Time and cost: The additional work required to prepare separate statements for each property may result in higher accounting fees.Ultimately, it's essential to weigh the pros and cons and consider the specific circumstances of your situation.

Additionally, you need an agent who specifies in this type of asset.

So, we found a property manager through a friend and fell into the business.In 2023 we decided the real estate thing might work, refinanced our property from 2009 and bought an additional rental property in the same area placed it with our current property manager… on purpose this time.

In addition, I did not move into my property right away due to renovations, I told the lender this, and he did not seem to care at all.

But, the point is you want to understand the rates/terms of the loan you are using to make sure that you are not paying a lot of additional costs or pre-payment required to get the cash out a few months early. it may very well be worth it but you want to compare apples to apples. 

SFH home with room and pre-permission from the county to build 2 additional units!