No, you cannot create phantom losses this way.Some additional issues that we have not addressed:- holding rentals inside an S-corp has many tax disadvantages- you will likely jeopardize your $250k/$500k capital gain exclusion for homesteads- you will lose asset protection afforded to personal residences by most states- you will lose your homestead exemption for local property tax - your insurance will have to change from owner-occupied to rental, i.e. go up- and there's moreConclusion: there're reasons why nobody is doing this clever "strategy" but A+ for trying.

So many variables can turn a deal sideways from 1 hour to the next - i.e. inspection findings, title issues, contracts, financing issues, taxes, dept. of buildings/local municipalities, etc.I'm glad to hear you made it through the challenges, and it sounds like you'll be able to leverage this experience as you grow your portfolio.All the best to you along your journey!

If you’re open to diving deeper into the Memphis market, I’d be happy to share more insights & connect you with local investors I currently work with that have seen recent success here!

I'm a lender local here to Cleveland right downtown and know the market very well.  

Since you're still living in the property, you might be able to house hack and keep the lower owner-occupied tax rate—worth confirming with a local tax advisor.

We're working with a mortgage broker local to us and he has put us in contact with Lendbase as well.

Any groups/meetups that i could attend in the local Houston area?

Your local laws are going to prevail.

If I were in your and/or your mother-in-laws shoes, I would go to a local bank and use the free and clear house to secure a $150K+ line of credit. 

Hey gang - A partner and I just started a local RE investor meetup.Q: For anyone that attends these regularly or runs one....what are some of your best practices/tips/tricks to keep your audience engaged and growing?