Context: I am furnishing my first STR.

Hey Eric I have some experience with furnished midterm rentals. 

Hello Everyone!
Looking forward to making new connections. learning from others and scaling my real estate portfolio. I've been investing for 15+ years and have a reasonably strong track record of personally acquirin...

Before diving in, it's crucial to grasp the basic types of real estate investments:Residential Properties: Investing in homes where people live, ranging from single-family homes to multi-unit apartments.Commercial Real Estate: Involves properties used for business purposes, such as offices, retail spaces, and warehouses.Industrial Real Estate: Includes manufacturing buildings, storage units, and distribution centers.Land: Buying undeveloped land with the prospect of future development or resale.Step-by-Step Guide to Starting in Real Estate InvestingStep 1: Education and ResearchThe foundation of successful real estate investing lies in understanding market trends, property valuation, and the economic factors influencing real estate prices.

If I sold the unit today, I will walk away with $100K in profit after agent commission etc.Given I cannot offset rental losses ($26K) against W2 (not a RE professional), any advice re: thoughts below:1) sell the rental in the next 3 years (under the 5 year and 2 as a primary occupant) to avoid Capital Gain.

U want your parents to talk to their CPA FIRST.. if they go the development route they are now ( depending on the amount of units) creating inventory.. which will be taxed at ordinary income rates ( very HIGH)if they just sell they can 1031  and move on to something else.. many times when you run the math consider the risks of a partnership.. the sale of the land is far better than thinking your going to make some profit.. 

Or if it blew a tree over on the house/fence/AC unit it adds up pretty quickly.

The property is a single family home with a separate entrance into the unfinished basement which will be converted into another unit.

You need two years of income history or recent college degree with employment, and about 4% cash of the sales price in checking/savings for 1-2 units.

Purchase price: $175,000 Cash invested: $267,000 This 3 bed, 2 bath BLOCK home has been fully remodeled in 2024.