Of course, the interest may or may not be deductible depending on how the funds are used, so it’s worth confirming that part with your tax professional.

Quote from @Andrew Gray: Hey BiggerPockets community,My name’s Andrew Gray, a former professional athlete turned real estate investor and mortgage agent.

Outside of my professional pursues, I enjoy weight lifting, traveling, and trying new foods.

In short: $558k gross, ~9% cap, modeled cash-flow of ~$92k/yr with professional management (or ~$140k if self-managed), and conservative 5-yr after-tax proceeds of ~$1.4M.I’m sharing the math, assumptions, depreciation treatment, and the risks/opportunities I saw (value-add ideas, occupancy sensitivity, and market comps).

In short: $558k gross, ~9% cap, modeled cash-flow of ~$92k/yr with professional management (or ~$140k if self-managed), and conservative 5-yr after-tax proceeds of ~$1.4M.I’m sharing the math, assumptions, depreciation treatment, and the risks/opportunities I saw (value-add ideas, occupancy sensitivity, and market comps).

.💰 Purchase Price: $173,000🔨 Renovation Cost: $50,000🏠 Sale Price: $390,000📆 Days on Market: 4💵 Profit (before closing costs): ≈ $167,000This project is a perfect example of how creative vision, strategic upgrades, and professional staging can turn an overlooked property into a massive win.We didn’t just flip a house — we created opportunity, equity, and a story of success.

I’ve been diving into the numbers, trends, and different business models, but I’d love to hear directly from others who have experience in this niche or in similar commercial ventures.From my research, salon suites seem like a strong model—steady demand, potential for semi-passive income once stabilized, and a great way to serve independent beauty professionals.

It sounds like you’d definitely benefit from doing a study since your wife qualifies as a real estate professional.

be flexible on the exit Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

You can earn passive income if you take a hands-off approach, or non-passive income if you actively manage your rentals as a real estate professional.