To me this would be okay if you are in more class A areas.

But once we went through the process of this revision to approved action, it triggered HCD to get involved since it’s in their jurisdiction since it’s a “special occupancy park”.

I’m wondering if anyone here has had success with this model and could share some strategies that worked for them?

Hope these help!

Joint Ventured with a few partners to get this done.

I've read about strategies to do this and bonus depreciation and how the 1 year bonus depreciation is being phased out.

What is the best way to go about doing this?

From reading your post, it seems that your monthly cashflow might be in the negative with all expenses considered.If you don’t go with the above, then you’ll be dependent on whatever you have set aside for cash reserves to keep the townhouse running.

By the end of this month, I’ll have saved up around $25,000, and I’m really eager to break into real estate.If you were in my shoes, how would you use that 25k to get started?

Imagine making millions of dollars throughout your career and then having to pay Uncle Sam 30-50% every year instead of compounding that cash over time.This is exactly what real estate professionals have learned to mitigate.To reduce their taxable income, they buy a building every year, do a cost seg, and use depreciation to reduce their tax liability dramatically.Their personal wealth snowball grows much larger and much faster than their W2 counterparts who give most of their money back to the government each year.Following this strategy as a real estate professional is one of the best ways to end up with a much larger net worth at the end of your career.