To make the losses non passive so they can offset your business sale gain, you’ll need to materially participate in the STR and ensure the average stay is seven days or less.

I live in Milwaukee, WI and the the quote is high. 

We’re currently developing a niche construction service in Los Angeles — stretch ceiling systems.This product is very common in Europe but still extremely rare in the U.S., and because of that, the demand from homeowners, designers, and contractors has been growing faster than we expected.This week we completed another project and learned a few things that might be useful for those working in renovation or home services:🔹 Stretch ceilings allow installation without demolition🔹 Jobs are usually done in 1 day🔹 Perfect for modern interiors, LED lighting, and high-moisture areas🔹 Strong margin business if the workflow is organized properlyWe’re currently building systems for:• faster installs• standardized materials• predictable pricing• and a scalable model for multiple citiesI’d love to hear from:— contractors— business owners— entrepreneurs who scaled niche construction services— or anyone who tested new-home-service models in the U.S. marketWhat challenges did you face when growing into new cities?

On the other hand if you lived in the 800sf unit all general expenses would be 80% deductible. 

Having a detailed, written Scope of Work keeps everyone on the same page.

There are approximately 30 feet from the house to the street.

Flips still move fast, but rising material costs and longer timelines are squeezing margins.Some investors are layering alternative funding (bridge + rehab draws) so the money arrives as the job progresses.Would love to hear your go-to funding structure when costs creep up.

So I built a system that audits bids line-by-line against actual material costs and local labor rates.The problem I kept running into:Contractors charging $950 for water heaters that retail for $549"3 hours of labor" for jobs that take 45 minutesMystery fees like "shop supplies" and "consumables" adding 15-20% to every invoiceI tested my system on my own portfolio and found I was overpaying by an average of 22% across 15 invoices.

Hello Brandon,The cost per square foot for property renovation is highly variable.

Quote from @Benjamin Louie: Since your wife will be materially participating in the Airbnb (cleaning, managing, handling guests, etc.), you won’t be stuck with the passive loss rules that usually block high-income earners from deducting rental losses.