@Jack B. we successfully rent a couple rooms in MA/RI where costs are also high so it is over $1000/room. 

I've found a couple through google searches but would love a BP referral if anyone has one to offer.

They're popular for house hacking because the down payment can be as low as 3.5%...but also means you can't get your hands on a super fixer-upper. 

Despite not having the cash on hand, this strategy paid off.

So LP do get the advantage of these deductions to the degree they are used to offset rental income.Here are some numbers to illustrate:$100,000 rental income less $80,000 of expenses including depreciation leaves $20,000 profit.In this case the investors do benefit for the $80,000 in expenses and depreciation as they are only taxed on the $20,000 profit.On the other hand if the numbers are $100,000 rental income less $120,000 of expenses including depreciation for a $20,000 loss.As you note, the $20,000 loss is passive and can’t be used to offset W2 income.

I’ll try back in a couple days and reiterate what the quiet title action process would be like for him.

Also, consider the potential for project delays, which could increase your holding costs.When it comes to getting the property under contract, engaging an investor-friendly real estate agent is a wise move with the first couple of deals.

Good Morning,I am looking at this market for STR and was hoping to get some first hand feedback from investors who are currently using this market and how successful it has been. 

And no point limiting yourself to $200k if you can afford $500k, and the potentially better investment choice that opens up.Beyond the basic calculations here are a couple things to think about: typically, lower income, lower cost areas come with higher turnover, heavier wear and tear (read more expensive turn over cost) and longer vacancy between finding qualified tenants.  

Link: https://www.hud.gov/program_offices/public_indian_housing/pr...Not sure if these will make up the entire cost, but I wanted to share a couple of ideas.It will work out.