San Antonio, Texas has clear permit categories and designated STR zones, reducing uncertainty.In these markets, compliance is a normal operating cost, not a constant fight for survival.Markets Where STRs Face Increasing ResistanceThese are markets where regulations have already tightened, and the political momentum suggests they could continue to tighten further, making long-term STR operations uncertain.1.

Spending $50K over budget upfront could break the BRRRR math.If leaving $50K in the deal significantly reduces your cash-out refi or increases your payback period, that defeats the BRRRR strategy.

With rentals, you have opportunities like depreciation, deductible expenses, and passive loss offsets that could help reduce your taxes while building equity.

An S-corp on top can make sense for active income (flips, wholesaling, property management), but it doesn’t usually reduce tax on pure rental income and can add payroll and multi-state filing complexity.With multiple states (NC/SC/GA/FL), you’ll also want to factor in state filing and nexus before stacking entities.You’re smart to think about protecting assets and your 22% bracket, but I’d model a simple version first (just LLCs + your current return) and only layer in an S-corp if the numbers and activity level really justify it.

@Mic SalvadorHey Mic,I get why Baltimore feels like the logical starting point since your brother is local, but if your goal is to maximize returns and reduce upfront risk, the Midwest offers a lot more opportunity for first-time flippers.

Wouldn’t house hacking reduce returns for a passive investor or lender?

"Close to 85,000 U.S. sellers took their homes off the market in September, up 28% from September 2024 and the highest level for that month in eight years," and the Senior Economist was quoted in saying,  “When tens of thousands of homeowners pull their homes off the market rather than accept a low offer, it effectively reduces the supply of homes that are actually available for buyers.

often prevents the purchase of unnecessary services or leads to better, more cost-effective outcomes.

@Michael OverallQBI number is not some "loss" that you can benefit from.It's simply an FYI number that prevents you from taking a QBI deduction in the future because you had multiple years of prior losses.Short story: you're not missing on anything.

Japan buy their own debt, reduce US debt.