All investing comes with risk, vetting, due diligence are big components to mitigate, not eliminate risk.Plenty of people have lost $ in real estate in a litany of ways.Don't get me started on Go Pro... biggest mistake of my life.

Whether to stick with small properties or scale into bigger multifamily depends on your financial goals, management preference, and how aggressively you want to leverage tax advantages.Staying with SFHs & Small Multifamily (Under 4 Units)Pros:Easier financing (conventional mortgages)Lower acquisition price per dealSimpler to liquidate individual propertiesFamiliar territory with less complexityCons:Harder to scale to $20K–$30K/month cash flowMaintenance and tenant turnover per door is less efficientSlower appreciation and less control over valuationTax Insight:Properties qualify as residential for 27.5-year depreciation.You can deduct mortgage interest, taxes, repairs, management fees, etc.However, losses (due to depreciation) are passive, and you likely can’t use them to offset W-2 income unless you or your spouse qualify for Real Estate Professional Status (REPS).Scaling to Larger Multifamily (8–20+ Units)Pros:More efficient operations (economies of scale)Higher cash flow per propertyEasier to increase property value via NOI improvementsIdeal for long-term hold strategiesCons:More expensive to acquire and financeCommercial loans require higher reserves and more due diligenceMay need partners or syndication structureTax Insight:You can do cost segregation studies to accelerate depreciation (break property into 5-, 7-, 15-year components).This allows for bonus depreciation—100% bonus is likely returning in 2025, giving a powerful deduction in the first year.Even without REPS, bonus depreciation may offset other passive gains across your portfolio.If you or your spouse ever qualify for REPS or use the STR loophole, you could apply those deductions to offset W-2 income.This post does not create a CPA-Client relationship.

Right now, my focus is on studying and deepening my understanding of the following: a) market analysis; and b) deal analysis, specifically with respect to what a pro forma looks like and its key components,  such as ARV, ROI, cash-on-cash return, Purchase Price and Acquisition Costs, Rehab/Repair Estimates, Holding Costs, and exit strategies.Even though I don’t have capital, I’m eager to learn as much as I can and absorb as much information as possible.

I have also experimented with breaking up the insurance into two important components, that is personal liability and peril.

Construction can have unforseen costs, construction loans for rounds of funding can be more expensive over time, rent markets can drop, vacancies in market can increase.Typically entitlement phase of land most risk, followed by development, followed by vacant building turn around, followed by half vacant building, followed by mainly full building with value add component, followed by brand new building with market or below in place rents and everything new with good location.Along that spectrum of course you go from heavy equity upside potential to mainly just the cash flow return and hopefully price appreciation over time.Investors have to decide on the spectrum of their risk assessment to capital over what period of time how they will allocate between all one type of investment or multiple and what percentages.

But there are two components to consider as part of your analysis:1) How much could homes increase in price between now and your potential buy date? 

Quick overview of our firm is three components.

NVDA, who is "the" global leader in the manufacture of the physical components, the brain as it were, of ai, the "light bulb" of the age completely changing everything, globally, every industry, everything.

It involves using Section 179 or bonus depreciation, and I would not DIY this project, as distinction between repairs and capital improvements is one of the most confusing areas of the tax law.And no, you do not need a cost segregation study to deduct these components of your rehab - if you have itemized invoices and receipts.Myth 8: for a valid 1031 exchange, I must exchange STR for another STRNo, you don't.

Turnkey/passive is the main component of my strategy and RTR is a perfect fit.