That said, some lenders offer creative structures like cross-collateralization or blended products that can reduce your cash out of pocket, so it’s worth connecting with a solid broker who works with investors regularly.

Quote from @Grayson Schiller: The property was zoned as a legal 3, but is in the part of the city where you can qualify for an ADU in the basement if you plan on converting into a regular rental- you can't get approval to convert into a legal garden unit if you plan on using it as a STR. 

Rather than looking to start with a multifamily, you could look at a regular house (more options and at potentially lower price points) and then get roommates. 

The cost to rehab vs. the ARV still allows for healthy spreads, and many providers in the area specialize in helping remote investors like you get started with:Fully renovated propertiesPlaced tenantsIn-house or partnered property managementIf you're not looking to be hands-on or fly in regularly, that plug-and-play setup can be a great entry strategy.Feel free to DM me if you want deeper insight.Good luck with your portfolio-sounds like you’re making smart moves early on.Best of luck, Melissa

Vandalism or Dumping - Unfortunately, vacant land can attract illegal dumping or trespassing, especially if it’s not fenced or regularly monitored.If you haven't already, it’s also worth talking to the planning department and checking for any future development plans nearby.

Are there many REITs that currently regularly engage in this type of feeder based structuring for a investors?

It’s especially useful to look at now while bonus depreciation is still phasing down.Using Passive Losses to Offset IncomeIf you can qualify as a real estate professional, that opens the door to using passive losses (like the ones from depreciation) to offset regular income.

Don’t skip any of those steps, even if someone seems nice.Set clear expectations up front — a solid lease and good communication go a long way.Document everything — from move-in photos to communication records, just in case.Budget for maintenance and vacancies — aim to set aside at least 10% of rent for repairs and maintenance.Know your local landlord-tenant laws — Texas is landlord-friendly, but still make sure you understand notice periods, deposit handling, and eviction rules.For networking:In Fort Worth, check out Fort Worth Wealth Builders or the local REIA groups — a quick search should pull up Meetup groups or their websites.In San Antonio, Alamo REIA is a solid group, and they do regular in-person events.BiggerPockets forums are great too, but nothing beats face-to-face networking for partnerships and referrals.You’re doing great by asking questions and being proactive.

If you're going to landlord the property, it's best to set high expectations, state the rules up-front, make sure you have exterior security and run regular pest inspections with each offboarding guest. 

My capital partner is choosing to exit—even at a loss—rather than hold and rent the properties, despite the possibility of a rebound in the coming months (as James suggests).Being in the vacation rental space, I regularly hear from STR owners who bought at the peak and are now struggling to cover their mortgages.