A short term rental lets you use cost segregation and bonus depreciation against your W2 income if you materially participate.

Rehab is always tracked as its own cost centerLabor, materials, subcontractors, permits, all separate line items.

In my experience (mid-Atlantic) I haven’t seen a lease-option clause by itself allow someone to command higher rent or materially upgrade the tenant pool. 

That can lead to a major reduction in your tax bill.The key is that those losses don’t become usable until the properties are purchased and operating, and you’re meeting the material participation standards.

The cost of labor and materials has also gone up substantially AND big things do wear out.

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.

And real work, not listening to podcasts.You can search Bigger Pockets for "REPS", we have a mountain of material to read and watch if you're interested in details. 

When investors use material participation for 100 hours and greater than anyone else’s time, they need to prove their time and someone else’s.

Most good GC's will be able to get Subs and Materials at a discounted rate that you will never get....so the actual cost to you may be close to the same.That way, you don't have to: 1) deal with the Sub's crews (you don't know anything about the trades and can be taken advantage of easily), 2) Deal with City Inspectors - they hate dealing with homeowners/Investors, 3) assume any liability for faulty work , 4) worry about Lien Releases and stuff like that, 5) Verify that all subs have Liability Insurance/Bonds/Workers Comp, 6) be involved with materials...picking up, storage, warranties, liabilities, etc....Your time is better spent running your investment business - find a new property to flip, keep your books in order, etc.

New builds feel cheaper because the finishes are modern, but overages are real, pad in a 10–15 percent contingency.2.