The concept of the Housing Authority running out of money never even occurred to me!

It certainly complicates an easy concept....

Really, really bad to buy with negative cash flow.

My philosophy is to catch negative reviews before they happen AND to make it easier for happy guests to remember to rate and review.

We purchased a property in early October and are placing it in service this week (mid November).We had intended to run a cost segregation study and try to accelerate depreciation which we can deduct against our W2 (assuming material participation).However, we have been reading through the IRS guidelines (eg publication 946 on Property Depreciation) and there seems to be the concept of "short year" which would mean that we can only deduct ~1.5/12 of a year's worth of depreciation in 2024.Is this correct or are there any different rules for STRs specifically?

If you could stomach the negative cashflow or get creative holding is not bad.

I have some who invest for negative cash-flow.

Its the best way for anyone to get started IMO.Will add that in todays market you might need to put down more than the minimum 3.5-5% in order to not be cash flow negative.

Let’s project realistic expense estimates via the 50% rule:$12k rent / 2 (50% rule) - $19332 P&i = negative $13332/year or negative $1,111/month.  

It seems like a really stupid concept to me.Perhpas some with actuall knowledge of how it work could illuniate us.