This is the simplest method, but it also means your tenants are more likely to abuse the utilities by leaving windows open with the heat or A/C running, leaving lights on, ignoring the toilet that constantly flushes on its own, etc.3.

This is assuming the entity is not a C corporation or has some UBIT blocker involved. 

I don't have any short term rentals, no S Corps or C Corps, no cost segregation.

Are you unclear whether to structure as a 506(b) or 506(c) or Reg A?  

@Anna RamashkevichRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

If it's cash flow, I’d recommend looking at C areas with B properties (higher-end of the low market), but if you're after equity, think C properties in B+ areas.

You shouldn't touch a Baltimore neighborhood under $200k unless you are a very experienced landlord with class c/d properties.

Reg D 506(b) allows for unlimited fundraising and up to 35 sophisticated investors.  506(c) requires accredited investors.  

We’ve got an Indianapolis C-class duplex that we successfully BRRRRed in 2020.