Now even nice houses 10 mins from downtown struggle here, you need to be well located, priced, and full of amenities - but when you check all the boxes you are most likely going to be successful. 

that's for a few reasons - one is that it just costs money to transact in the form of closing costs, which can be substantial; two is that the first few years of ownership are typically a stabilization period, in which the owner is putting money into the property; and a third is that interest rates remain high, making cash flow more challenging anywhere.calculations that show you "cash flow" in the first month or year or even first few years just ignore all of this and pretend that any proceeds over the mortgage are cash flow, when they aren't.i say this not to discourage you but because we see so many posts in the forums from folks in HCOL areas like CA whose expectations are not properly set. 

If they’ve been a headache for the current owner, you’re just inheriting that mess.Third — just make sure the numbers work for you, not just “the duplex looks nice.”Even with tenants in place, you need to know what your:MortgageTaxesInsuranceRepairsVacancyAnd (possibly) management would look like.A lot of new investors skip this part and find out later the “good deal” barely breaks even.

It can offset other rental income, passive gains, and in some cases even a bit of W-2 income if you actively participate.

By the way, we save even more if we do it in the alley instead of an office.This one really screws the seller and gets the buyer sued.

.), the IRS lets you treat the activity as non-passive, even if you don’t meet REPs.

Many of our competitors and nearby communities are offering aggressive move-in specials like ½ off the first month, one month free, or even two months free rent.In our leasing office, we’ve received a high number of inquiries, but many of the prospects simply don’t qualify.

I imagine you are able to even buy 50% because the sellers are thankful to be rid of their partner situation.

Even with the LTR, you can do the same with REPS.You're also correct that the key factor for cost segregation isn’t whether it’s an STR or LTR, but whether you have non-passive income to offset and whether you meet the material participation requirements (or you have passive income).I just sent you some resources that will be helpful for you.

One thing I would do is the foundation and the termite, check to see if you list it at market value if you can get someone to buy the place and disclose the issues and give them a credit or meet them in the middle or even 2/3s of the cost and you can save some money and maybe even get the deal to make some money.