Many of these homes have not been updated in years and need work, which makes them tough to sell to a regular home buyer.

There’s consistent occupancy from students, professionals, temporary relocations, and hospital staff, and they often allow for better cash flow than regular long-term rentals.

@James Thomas Nakashian You can use your regular process and modify your lease accordingly.

AB did not make the election under § 1.168(i)-6(i)(1).(2) For 2016, AB is allowed a 50-percent additional first year depreciation deduction of $5,000 for Computer Building X2 (unadjusted basis of $10,000 multiplied by 0.50), and a regular MACRS depreciation deduction of $1,000 for Computer Building X2 (the remaining adjusted depreciable basis of $5,000 multiplied by the annual depreciation rate of 0.20 for recovery year 1).(3) For 2017, AB is allowed a regular MACRS depreciation deduction of $800 for Computer Building X2 (the remaining adjusted depreciable basis of $5,000 multiplied by the annual depreciation rate of 0.32 for recovery year 2 × 1/2 year).(4) Pursuant to paragraph (g)(5)(iii)(A) of this section, the 100-percent additional first year depreciation deduction for Computer Building Y2 for 2017 is allowable for the remaining exchanged basis at the time of replacement of $3,200 (Computer Building X2's unadjusted depreciable basis of $10,000 minus additional first year depreciation deduction allowable of $5,000 minus the 2016 regular MACRS depreciation deduction of $1,000 minus the 2017 regular MACRS depreciation deduction of $800) and for the remaining excess basis at the time of replacement of $1,000 (cash paid for Computer Building Y2).

Make sure they invest themselves, regularly help other people invest and they don't disappear after they get a check.

We regularly visit our beach STRs on their vacancies.

“I’ll lose money on hidden or unexpected expenses.”Regular financial reporting, full disclosure of fees, and proactive maintenance planning make expenses predictable and transparent.Out-of-state investing doesn’t have to be risky — it has to be planned.The right systems, communication channels, and local expertise can turn what feels like a gamble into a scalable, stress-free investment.If you’ve been considering expanding to new markets but aren’t sure how to overcome these challenges, I’d love to discuss your concerns and share what’s worked for other investors.

The right team matters: use a real estate attorney who drafts TICs regularly, a tax advisor who understands depreciation allocation and exchange rules, and a lender that is explicitly comfortable with TIC structures.If you share the property type, market, rough deal size, number of co-owners, and whether a 1031 is involved, I’m happy to sanity-check the structure.

I like to make sure both sides know the vision, budget, and timeline before we break ground, and then keep things transparent with regular updates along the way.

@Andy Horobec, I think the co-living situation is great for some & indifferent for others that depend on the situation.In general, I'd always ensure that any potential property consider still meets the general criteria for what you consider is a deal as if you were renting it out as a regular SFH.Many people got caught up with this in regards to AirBnB, then I feel like oversaturated the market.