Check with your CPA if cost seg makes sense before proceedingRISK - If the IRS disallows your cost seg, the risk will be the taxes previously due and any penalties. 

Have you discussed the strategy with your CPA? 

I completed an internship in commercial real estate, and I also attended a couple of local REIA meetings/networking events before moving to Northern VA.I was able to narrow down potential strategies, and I figured both BRRR as well as wholesaling don't seem to be the best strategies for me.

Failure to meet material participation rules will limit rental losses to offsetting passive income or carrying forward.This post does not create a CPA-Client relationship.

Hey @Nick Gallon Martin, I recommend speaking to a Tax Planner/CPA, @Jeff Nash would be a great resource for you.

As a retired CPA, I saw plenty of tax returns by these firms that clearly were done poorly. 

Building a trusted network of contractors will save time and ensure consistency as you scale.

What types of IRS/CPA approved payments are working well for rents to LLC entities to keep personal and business funds from co-mingling? 

Explore multifamily or out-of-state investments for higher yields.Setting up an LLC provides liability protection but has no tax benefit for you now.This post does not create a CPA-Client relationship.

Please talk to your CPA.