If you meet the IRS material participation rules, you may even be able to offset W-2 income with those losses.

The two things that will eat you alive, holding costs and change order/increased material/labor costs.

There’s definitely strong opportunity in those markets, particularly in areas that blend seasonal appeal with year-round utility.Happy to connect and share insights on everything from acquisition strategy and market positioning to how to maximize the tax advantages available through material participation in STRs, especially if you’re planning a phased transition into full-time real estate.Feel free to reach out, always happy to chat with driven investors like you!

I can see the cost of materials and supplies go up, from lumber to faucets to joist hangers, which in turn will drive new construction prices.

Why the focus on material things?

It’s a strong reminder that when you’re dealing with material participation or multi-property issues, you need someone who will actually advocate for you, not just check the boxes.

They reaffirmed their commitment to their Billion-dollar 2nd campus in Austin and said it is working with Applied Materials and Samsung in Austin on a new way to manufacture chips. 

My loan payment would be half of that, so my DSCR would be 2 : 1, or I can do an easy flip for 50k+ profit.I'd repeat this over and over and over, utilizing both exit strategies.Constantly staying flush with cash in the meantime and eventually do 2 at a time.

My tracker includes:Purchase price + acquisition costsHard money loan breakdown (points, interest, etc.)Holding costs (insurance, taxes, utilities)Rehab budget by category (demo, framing, paint, plumbing, etc.)Actuals vs Budget trackingProfit/loss summaryI update this weekly as invoices and receipts come in.

Was a great learning experience, especially when it came to design and quality of final materials based on surrounding market.