Document your casual contractor convos with follow-up texts.

At 7 units total, systems matter way more than hustle.Biggest advice: document everything early — unit condition, communication, balances.

I chose the engineered route after comparing several options and ultimately felt comfortable with Cost Segregation Guys based on their process and documentation last month. 

Keep documents organizedCreate a Google Drive folder for each property and save receipts, invoices, closing statements, and other documents there.

A few quick recommendations:Confirm it qualifies as residential rental (27.5-year) and watch for any personal use issues.Be conservative on interior components (cabinets, sinks, related plumbing/electrical can get scrutiny).Lean into the amenities — hot tubs, saunas, exterior lighting, concrete pads, landscaping often drive solid 5- and 15-year allocations.Make sure renovation costs are well documented — invoice detail makes a big difference.Double-check placed-in-service date and bonus eligibility.Sampling doesn’t apply unless you’re dealing with a portfolio.When structured properly, STRs can sometimes outperform traditional long-term rentals due to amenities and upgrades — just don’t get overly aggressive on structural components.Hope that helps 👍

For lenders, the practical impact is increased questions and documentation at closing rather than a new licensing or AML compliance requirement.

@Joseph Cohen - hard money is your best bet, least restrictive when it comes to documentation, etc.....if you have a GC who can demonstrate successful build experience, this will help you out significantly as you pursue the financing.

There is a lot of that in the private lender space, with brokers who were pushing loans through these institutions, and some of the documentation was clearly inflated and people were given loans who should not have been given loans.

Most lenders aren’t underwriting it purely as real estate — they’re underwriting operations, staffing, licensing, and census stability, which is why acquisition financing is often the hardest part.On the refi side, what typically unlocks capital isn’t just NOI, but seasoned census, operator track record, and documented margins once the platform is stabilized.

Appraisals of equipment, clear and compliant documentation, and detailed financial projections are helpful to improve terms.