(August 2022)
Single-family residence buy & hold investment.Current Value Estimate: $410,000

Purchase price: $345,000

Cash invested: $5,000

I can see where you're coming from, as we're testing new formats and guest combos on both shows, and the distinction can be a little blurry.

The BRRRR strategy, which stands for Buy, Rehab, Rent, Refinance, Repeat, focuses on long-term investment, while the Fix & Flip approach involves purchasing, renovating, and selling properties for a profit.Investing in Airbnb rentals presents a distinct set of challenges, requiring active management and a thorough understanding of local regulations, but it also has the potential for higher returns.Here is a concise overview of the advantages and disadvantages of each method:Fix & Flip:Pros.- Potential for quick profits - Enhances property value - - Adaptable to market trendsCons.- High risk - Time-intensive - Requires substantial capitalBRRRR:Pros.- Builds long-term wealth - Generates rental income - Increases equityCons.- Complex process - Requires financing - Dependent on market conditionsAirbnb:Pros.- Potential for higher returns - Flexible pricing - Short-term commitmentCons.- Requires active management - Subject to regulatory risks - Income can vary seasonallyI wish you the best in your new venture.

Additionally, since my parents are nearing the retirement age, I'd like to prioritize low-debt, high-cashflow deals.

What a tremendous accomplishment at such a young age. 

I will return to this situation in the end of this post, but first let me show you why the age of a person can be tricky when it comes to the IRS.

That’s a critical distinction because our industry is so much about trust, empathy, and truly connecting with a seller.

They remain distinct on Form 1040 with different tax treatmentOnly capital losses can offset capital gains (except for the $3,000 allowance)So even though material participation makes the loss non-passive, it's still an ordinary loss that cannot offset capital gains from stock sales on the return.The only way capital losses can become ordinary is upon the sale of your property, and that loss could offset your W2 salary.  

It also features a minisplit HVAC system and PVC exterior covering.We plan to market it as a vacation rental, given its potential appeal to eco-conscious travelers and those looking for a distinctive getaway experience.I’m reaching out to see if anyone has experience with selling or financing geodesic domes.

The valuation and market value of a multi family property differs from a single family and you want someone that understands the distinctions if you go that route.