Co-living isn’t just an alternative to traditional rentals—it’s a way to maximize cash flow, lower risk, and attract investors.To make this post more insightful, I’ve included graphs and visuals that break down the key benefits of co-living and why serious investors should be paying attention.1.

They buck the passive rules for 469, and are considered active.BUT - As with any other business, to deduct the losses the owner must materially participate.Material participation is achieved by:1.

If you're not already plugged into a strong local team in your target markets, it can eat into both time and returns.An alternative to consider, especially for diversification and immediate cash flow is to invest in multiple turnkey rental properties across landlord-friendly markets in the Midwest or Southeast.

As I said inspector and I assumed it was antique due to other parts of the home using repurposed material.

They act as your boots on the ground, pushing timelines, managing trades, double-checking materials, and holding the GC accountable—without you having to micromanage. 

Without REPS or STR-level material participation, the depreciation losses will be passive and may only offset passive income or carry forward.So yes—this is a viable strategy, but to unlock the full tax benefit, make sure you:Use a qualified cost segregation providerWork with a real estate CPAConfirm REPS or STR eligibility to apply losses against active incomeProper allocation and documentation are key to maximizing the deductions while staying compliant.This post does not create a CPA-Client relationship.

I had a contractor, and a plumber come to look at the room, and their quote on the work was $9600, not including materials.

Housing Market Has Nearly 500,000 More Sellers Than Buyers--the Most on Record — Redfin <---People think providing alternative solutions to sellers is "weird."

If a dwelling unit is abandoned after the time prescribed in subsection J of this section, the landlord shall send the tenant a notice of abandonment by certified mail, return receipt requested, addressed to the tenant's last known address and to any of the tenant's alternate addresses known to the landlord.

LTRs offer stability, while STRs can produce higher returns, but come with more risk and management needs.STR Tax Advantage: If you materially participate (100+ hours and more than anyone else), you can qualify for the STR loophole, allowing bonus depreciation to offset W-2 income, without needing full REPS status.Use Cost Segregation: Ask your CPA about doing a cost seg study to accelerate depreciation, especially if 100% bonus depreciation returns in 2025.Backup Options: If managing real estate feels overwhelming, consider a Delaware Statutory Trust (DST) for a passive 1031 route, or an installment sale to spread the tax burden over time.Meet with your CPA and 1031 intermediary to ensure your reinvestment strategy is tax-optimized and aligns with your comfort level on risk and management.This post does not create a CPA-Client relationship.