Quote from @Johnathan Cummings: Hello BP, I’m looking at buying a property to flip.

Even if you don’t qualify for REPS, you can still take advantage of depreciation; it just won’t have quite the same effect and usually requires some extra planning to maximize. 

As a contractor the biggest pitfalls I see are investors buying a wholesale property that the wholesaler said certain work has already been done...

I helped other investors buy out here for STR.

It's also easier to exit if you're buying 1-2 units.A BTR will likely work better at scale with with 10,20,30+ homes that could be sold as a portfolio on the exit.

The extra diligence upfront saves a lot of stress later.Get everything in writing — use a solid lease template (there are great state-specific ones online) and document all move-in/move-out conditions with photos.Separate your finances early — open a dedicated rental account so income and expenses don’t mix with personal funds.

For a newer investor, a long-term rental in a steady market might be the safest next move.To maximize your money, consider house hacking or buying a small multifamily, you get rental income while living in one unit.

Are owner-occupants buying that high here, or is this an investor-only area?

Is paying the extra $20K of principal worth it?

Are you looking to flip a property for extra capital?