The tax courts have created a pretty effective standard for considering the legitimacy of refinances prior to a 1031 exchange. 

I have seen local CPA's claim they can help offset high W2's with short term rentals here in LA.

@Tracy Scott it's highly dependent on the deal, the type of property and the location.In addition to the items others have mentioned, here are some of the biggest potential start-up expenses that I study closely before buying a property:Foundation/structure--this is one of my few "deal breakers", I typically will not purchase a property with significant foundation or structural issues.

I haven't been highly motivated, just wanting to get in the market when the right opportunity came along.  

You're losing up to $200 a month (on the high end) or $50 on the low end, again another $2400-$600 a year.

The items need not be high-end; they can be sourced affordably without compromising visual appeal.

Banks may also offer a construction to permanent option and in some cases you can negotiate a stabilzied release which can be a cost effective option in lieu of completing a refinance.

Jack Bosch and a lot of the land flipper guys who teach it like to have their students buying in the high deserts and remote areas of the Western US  or in FLA like le High Acres etc. this is were cheap land is and land that gets traded constantly at tax sales.. the play for most of them is really simple.buy at tax sale or with direct mail.. for a few grand  re-market them for more and sell on terms and collect monthly payments.. 

In this high-interest rate/high-price market, house-hacking is more about offsetting as much cost as you can.

Hi All,I am considering distance investing due to the cost of entrance being a little high in my locale.