Risk & Due Diligence – Ensure the deal has strong equity, a solid exit strategy, and an experienced investor before funding.

For what it's worth, I tried to run your numbers using the proforma I use with my CFO clients and I'm getting an IRR (average annual return) of nearly 23% (see page 2): Kalamazoo Properties

Focus on areas with strong rental demand, like Broad Ripple, Fountain Square, or near universities like Butler and IUPUI.Maintenance Costs: Indiana weather can be tough on properties, so budget for seasonal maintenance like snow removal and HVAC servicing.Additional AdviceKeep an Emergency Fund: Unexpected repairs or vacancies can arise, so having 3-6 months of expenses saved will help you weather any surprises.Build a Reliable Team: I have lists of contractors, handymen, cleaners and property managers if you'd like me to send.Good luck with your property and future expansion!

Assuming you are both working and the rentals are long-term, rental losses up to $25,000 can offset W-2 income if your MAGI is under $150,000, with excess losses carried forward.This post does not create a CPA-Client relationship.

However, Opportunity Zone investments require careful structuring to ensure compliance.Evaluate your priorities: If starting a business is the main goal, proceeds from your primary residence (with the capital gains exclusion) might provide the simplest funding option.This post does not create a CPA-Client relationship.

What I am trying to understand is after Coachella ends, would it still have the strong recurring demand/occupancy for STRs?

Help your clients write smart offers based on #4.

For every angry client we have many more that are doing just fine!

Look for a team with a strong track record in managing rentals like yours, especially in your target area.

A 1031 exchange doesn’t apply, but funding through a self-directed IRA can defer taxes, though profits from debt financing may trigger UBIT.To reduce taxes, consider forming an LLC for better expense deductions, offsetting gains with investment losses, or holding the property for 12+ months to qualify for lower long-term capital gains rates.This post does not create a CPA-Client relationship.