Could also potentially get a 2nd behind the first at 2.99%.

Unpermitted bedroom conversions would increase your potential liability and may hinder the resale in some ways.

Potential ways to spread their tax burden over years as well. 

The potential to both diversify broadly and own "hands-off" institutional real estate can be very powerful, and many of our investors have done just that. 

Conduct thorough market research to comprehend the potential real estate markets, considering aspects like employment growth, population trends, rental demand, property values, neighborhoods, schools, and local laws.

Sean, thank you immensely for your thorough response.

It fits within our buy right criteriaWe own 12 units right next door.Newer vintageThe three beds are in high demand, and we are blowing away the 1% ruleThere is very little cap exWe focus on PPU (profit per unit), and this is going to profit nicely and add to our scale in that part of the marketExit strategy is to refinance our capital out when rates drop, and to hold long term.You have to be willing to take what the defense gives you, and you have to understand all of the investing strategies and know when to use them2021 and 2022, we only did about 200 units, smaller deals, but very profitable and we’ve refinanced all of our capital.2023 was an excellent year. 128 units, 105 units, and 97 units.If you aren’t doing deals, you can always be improving operations, meeting more potential investors, and creating more relationships.Life is like real estate.

I don't hide from potential clients.

Mid-Term Rentals are generally the same concerns as STR, but you could argue less potential vacancy and if the property is subject to rent control, it is a potential legal workaround. 

Documentation should include details regarding the business purpose, total use of the property, specific expenditures, business usage, and dates of expenditures and use.In the absence of such documentation, deductions are vulnerable to disallowance, leading to potential penalties and additional tax liabilities.