Using a HELOC to fund your first STR can work well if you keep a close eye on cash flow and reserves.Since you want to build a team and eventually scale, focus early on connecting with reliable contractors, property managers, and lenders who understand STRs.

That’s awesome you’re branching into STRs — especially with your background in commercial development, you’re already way ahead in understanding the fundamentals.

@Harrison BeckhamRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location/neighborhoods to invest in.Why is Property Class so important for investors to understand and apply in their investing strategies?

That tax angle can make a huge difference early on.Also, if you haven't already, start building relationships with a local agent who understands STR regulations and seasonality in that market.

@Kelly ChambleeRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Why is Property Class so important for investors to understand and apply in their investing strategies?

#1 problem - they either don't properly value their own time or don't really understand how time intensive getting work done on a property is.They incorrectly assume that either:- PMCs have handymen that can handle everything for a $x/hour they got off Craigslist ad- It only take minutes to call 3 contractors for bids, schedule appointment with the tenant(s) AND the contractor, meet contractor at the property, get bids, review all the bids for completeness, then schedule work, inspect the work to confirm quality & completeness, verify any warranty, etc.They are only partially correct. 

If you buy from wholesalers, you understand the common 'rules' that apply.

How can they understand whether this is the case?

Understanding IRS Section 179 is key to optimizing your tax strategy.179 lets businesses expense certain assets upfront instead of depreciating them over time.For 2025, up to $1.22M of qualified equipment and software can be expensed, but there are limits.The maximum investment threshold is $3.05M, reducing the deduction dollar-for-dollar if exceeded.Additionally, the Section 179 deduction cannot surpass your taxable business income, and some assets, like real property, generally don’t qualify unless specified as "qualified improvement property."

Airbnb allows renters at 18, so understand that.