Hi AllWe have a client wishing to utilize a sub2 strategy for several purchased in our market.

The great thing about house hacking is that it's a very flexible strategy.

Third-party data supports the theory that the RRG area stands out as one of the top STR markets nationwide.

Here's a mix of steps and strategies that might help steer you through these choppy waters:Documentation Is Your Best Friend: Make sure you've got a solid paper trail of all interactions, notices, and agreements related to rent payments.

Second option, if it's even valid, I could build a new house in one of these new communities and then have the house for another few months and sell it (assuming that it would have increased in value) Any input to any of these two strategies would be highly appreciated!

Hi @Tien Ly, It is just a relatively new tax-deferral strategy and there is only one tax court case and one IRS Advisory ruling on the strategy, so most advisors are still concerned about what the IRS's position and approach will be.  

Your plan to execute the BRRRR approach sounds like a solid strategy! 

I have a friend of mine that uses multiple strategies inside of a Roth 401(k) and has turned a small amount into millions over the last 10 years. 

You use it only with a solid exit strategy to refi or liquidate and pay it off within a set time frame.

What you need is cash money to invest, cash money for backup needs, a strategy that works in the current market where you are investing at, and some entrepreneurial drive- guts.