However, If you own a property with an average period of customer use of 7-days or less (or 30 days or less with substantial services provided (a different conversation)), it can be treated as a "business" for tax purposes.Now that it's in this business "bucket", the taxpayer can materially participate (7 tests) in the operations in order to treat the activity as non-passive.

Most of my clients who made the purchase through me and then the ensuing management fall in the following buckets a) Second home owners - people who want to have a home with personal use and can still break even or make a little money b) tax buyers - looking to offset income with some cashflow and future appreciation c) true pure investors. 

As I got closer to retirement I needed to re-balance my total stock market index funds and increase the amount in my less volatile asset bucket.

If you just want realistic rehab ballparks, think in price per square foot buckets and you will be close enough to underwrite.

We will buy some 3-gallon bucket White Pines and Blue Spruce for $45 each. 

That is a drop in the bucket to get potentially tens of thousands in tax benefit. 

Neighborhood and block matter more than city averages.If you want, happy to share neighborhood “buckets” where these strategies tend to work - best of luck with your first property !

So your 100% criteria must fall in that 65% project cost bucket or else you don't get the 100%.For the Buy and Rehab portions of the BRRRR, a personal private money relationship works best that will pick up 100% of the costs and even let you roll the payments into the back.  

KFC Canada accepts bitcoin, but can you imagine trying to pay for your $5 bucket of wings only to find out that you actually paid $45? 

My buddy put on a tyvek suit and armed himself with a hammer, a razor knife, a 5 gallon bucket and a ladder.