@Lesley Resnick, yes, we see cost segregation and bonus depreciation used all the time on single-family homes, but they are only worth it in specific situations.

Designed specifically for RE investing.

Happy to share specifics on towns that work (and ones to avoid) if helpful.

Also, older homes in cold climates specifically - anything to look out for or should I just steer clear?

STRs are exempt from the passive activity loss limitations if certain material participation tests are met, even without REPS status.Now, for some very rough numbers (this is not tax advice — definitely speak to a CPA for your specific situation):Let’s say you buy the property for $315,000 and you do around $100,000 in renovations.

If funding isn't in place, then the deal is contingent on buyer getting full funding approved by a specific time or the deal is not guaranteed. 

The former is closer to STR, the latter closer to furnished LTR.As such, the market is VERY localized and specific.  

We already have investors we’re just green in this specific type of industry!

I’ve had searches set up for quite some time (I’m also a realtor) and I’ve been actively prospecting the specific neighborhoods I want to be in, but I’m coming up empty.Because of this, I’m curious to hear opinions on an alternative strategy: buying a single-family home or townhome in my target area, living in it for 1–2 years, then renting it out while continuing to look for a multifamily property.

why is it too good to be true you might get some replys if you post specifically why you think its to good to be true.