I agree that returns are completely achievable as a passive investor, and I think it boils down to an investor understanding how to mitigate their risk via selecting the appropriate sponsor team etc.

I can better address and foresee potential problems and mitigate.

But remember that by selling it you forfeit all its future appreciation, so give it a thought.As far as tax mitigation should you sell it - as Jonathan mentioned, you may qualify for a prorated exemption if you had some unforeseen circumstances to move out, such as job, family, health reasons and so on.

In my opinion, people looking to house hack in Chicagoland now should be focused on just getting into something with a low down payment, build equity and make improvements, and mitigate their housing payment.

Once that part is done, then a lot of people don't understand risk factors and how to best mitigate potential losses.

Fayetteville is a good market for recession risk mitigation (thanks to the military) but that hardly (imo) outweighs the increasing difficulty and smaller profits. 

Once you've built up equity and gained experience, you may decide to move out and repeat the process with another property.Mitigating Risk: Having multiple units can help mitigate the impact of vacancies.

.- Mitigating risk: Having multiple units with tenants helps spread the financial risk associated with homeownership, ensuring that rental income can cover expenses even if one unit remains vacant.- Favorable financing terms: Owner-occupied properties often qualify for better financing terms, including lower down payments and interest rates, making house hacking an attractive option for those with limited capital.- Personal living experience: House hacking allows homeowners to live in one of the units, providing a more personal connection to the property compared to purely investment-focused properties.

IMO, I mitigate the vast majority of missed/late payments and/or eviction by renting to folks with 650+ FICO scores.

It's strongly recommended to synchronize your rental license with the deed entity, specifically TABS Holdings LLC, to adhere to regulations and mitigate potential legal risks.