I think these models are very un motivating, In an industry like this you are paid to drive in business.

That means more of your cash stays in your business, not the IRS’s pocket.For many buyers in this market the ability to offset income and reinvest tax savings is a major advantage — and it strengthens your underwriting.Since STRs have strong appeal (friends & family groups, weekend escapes, high-end amenities) the sooner you position it as a business, the better your financial outcome.Your Step-By-Step Playbook for Cost SegregationHere’s a practical checklist to make cost segregation work for you in an STR:Buy/underwrite with tax strategy in mind: When you evaluate a property, include cost segregation as part of your operating model (not just nightly rate and occupancy).Engage a cost segregation specialist: You’ll want a qualified provider who understands STRs (they’ll allocate assets into proper shorter lives, document everything).Structure operations for “business” treatment: Track participation (guest communication, property maintenance, marketing) to lean into non-passive income treatment.Conduct the study early: Ideally in the year you take service (purchase or major renovation) so you front‐load benefits.Keep detailed records: Invoices, improvement costs, design/furnishing upgrades, hours spent managing.

My team has worked with quite a few investors doing co-living or rent-by-the-room models around metro Atlanta, and overall, it can be a really strong strategy when approached intentionally.Co-living fills a very real gap in the market — it provides affordable, flexible housing for working professionals, students, and people in transition, while also producing higher returns than traditional single-family rentals.

Quote from @Arman Ahmed: @Chase CalhounHey Chase,I hear you, the BRRRR model has definitely shifted in today’s higher-rate environment.

Perhaps the homes you're using for your own business model are different than the types of homes we're using and with that, perhaps the type of clients you have are different than the type of clients we have. so with this information, it makes sense that our answers/responses are different.

Hey everyone 👋
I’m analyzing a 27-unit multifamily value-add opportunity in Chicago and would really appreciate some feedback from investors who have done similar deals.
Here’s what I’m trying to wrap my head around...

However, if you desire to build a sustainable business model you must factor in all your costs.

My favorite strategy is STR/MTR hybrid model.

I’m looking to build a solid relationship with someone who understands the BRRRR-style model and is comfortable working with this type of tenant setup (sober living, structured housing).Appreciate any insights or recommendations, especially from those who’ve built strong lender relationships over multiple deals.

I’ve built a series of investing sensitivity models that are a cornerstone of our operating agreement, helping us analyze deals, manage risk, and guide decision-making with disciplined, data-driven assumptions.I joined BiggerPockets to continue learning, share insights, and connect with other investors, builders, and lenders who are focused on thoughtful, long-term investing and operational excellence.Very impressive, but rocket scientists are poor investors.