Most folks will try to match their adjusted cost basis with the sale portion allocated to the FFE of the business so there is little or no depreciation recapture for the FFE.Whatever allocations for good will and FFE you end up with can be used to pay off those pesky personal bills. 

Around here that is what I believe to be a really great return provided you can have your offer accepted in this competitive climate.

2) is there a max AGI (Adjusted Gross Income) at which this strategy (of using the RE professional status to reduce active income) is no longer worthwhile?

So if you're targeting them specifically, you can adjust your minimum nights accordingly if that's what your looking for.

I see every acquisition as a mandate to try and maximize the highest risk-adjusted returns to partners.

Our target for all of 2018 was 10 houses...so it seems like we have to adjust our goal.Our Jacksonville Property Manager (@Corey Clarkston from St John's Property Management) is actually the one who brought us the 6 SFR portfolio, and we are so happy to be working with their team to find new deals and manage our current properties. 

In todays climate Class A rarely meets the 1% rule.

A $6,000 adjustment for two extra bedrooms?

In Phoenix, I currently use $3300/unit/year as a starting point for expenses and adjust for variables. 

I realize the apartments would be a more stable investment but I feel like the hotel industry, especially in certain areas/climates, has the potential to provide a serious income.