While this may exempt it from being classified as a rental activity, active participation remains a requirement, necessitating compliance with three tests: spending 500 hours on the property, dedicating at least 100 hours (and more than any other participant), and performing all the necessary work needed.Additionally, long-term viability and consideration of depreciation recapture are important concerns.

It's important to consult with a tax professional who can advise on how these strategies align with your overall financial situation, especially considering your full-time employment and income structure.Moreover, as your portfolio grows, and particularly if one spouse can transition away from W2 employment, the landscape of your income and tax liabilities shifts.

Once you get past the zoning hurdle, its important to engage an architect who can lay out units.  

Does your rent include all utilities, if not factor that cost in.

If so, take photos of the place before you clean it and send a bill to the last known address including any cleaning costs and unpaid rent. 

Buying a 4+ bedrooms with a bonus room or flex rooms they’re able to charge from $650 to $750 per room including utilities.

., tax savings) might be more important than immediate cash flow.

But now he is staying so we decided to play the cat card, and told him that per his lease pets not allowed and if he would like to keep it we will need to amend his lease to include additional $100 pet rent plus collect additional security deposit.

@Beth AndersonWhen considering house hacking a property, it is important to carefully evaluate its financial viability and make sure that you can comfortably manage the mortgage payments without depending solely on rental income.

We intended the property to cater to a variety of groups including corporate and yoga retreats.