Yeah I want to expand my portfolio to more non-STRs but want to know if I reach the hour requirements in my non-STR portfolio, would being self employed, paying myself a W2 salary (but most of my income is from shareholder distributions be an issue? 

Quote from @Matheus Souza: Hey everyone so I am a brand new real estate investor just starting out looking to invest in long-term rentals and I need some insight, so I am recently self-employed for about seven months and I know I can't get a traditional loan due to me not having two years of self-employed tax return therefore I came across DSCR loan and Bank statement loans what are your guys's thoughts on those?

The real change is tax characterization: a hotel-style operation is typically reported on Schedule C and can be subject to self-employment tax, while a true STR without substantial services is usually reported on Schedule E and is not subject to self-employment tax.

Even with a small amount of self-employment income, you can still open a Solo 401(k), make limited contributions, and roll over a traditional IRA if the plan allows it.

Is there a company I can go with to take a loan out against my 401k as I have 2 from previous employer I need to combine to a new one which would be helpful if I could use that to pull cash against. 

Since your businesses are producing active income, you’re taxed on the full net income amount for self-employment tax.

The area as a whole has seen 5.2% employment growth over the past 12 months. 

They’re not just working harder; they’re working smarter with the S-Corporation tax strategy.But before we dive in, let’s clear one thing up:*This only works for active income.That means flipping, wholesaling, commissions, construction, or property management income.It does not apply to rental properties or long-term passive investments — and putting rentals inside an S-Corp is one of the worst tax mistakes you can make.Let’s break it all down:Step 1: Why the S-Corp Exists (and Who It’s For)An S-Corporation (S-Corp) is not a special type of company; it’s a tax election.You can form an LLC, then elect for it to be taxed as an S-Corp.It’s perfect for people earning active income — anything where you work for the money:-Flipping houses-Wholesaling deals-Real estate commissions-Property management fees-Contracting or constructionHere’s why:A sole proprietor or regular LLC pays self-employment tax (15.3%) on all net income.An S-Corp lets you split your income between:a “reasonable salary” (subject to payroll tax)and “distributions” (not subject to self-employment tax).That simple shift can easily save five figures a year once your business income hits the six-figure mark.Step 2: How the Wealthy Use It to Build Explosive WealthHere’s the play wealthy entrepreneurs use again and again:They pay themselves smart, not just more.Set a reasonable salary — what the IRS expects for your role — and take the rest as distributions to cut payroll taxes.They reinvest the savings.The extra cash that would’ve gone to taxes gets redeployed into more flips, marketing, or acquisitions — compounding their growth.They hire strategically.Many bring family members into legitimate roles, shifting income and creating generational wealth legally.They layer entities.Example:S-Corp runs the active business (flipping / wholesaling / management).LLCs hold the long-term rentals.That separation protects liability and keeps tax treatment clean.Why S-Corps Don’t Work for Rental PropertiesHere’s where many investors go wrong — using an S-Corp to hold rentals.

I’m curious if I’m missing anything to my list so far I have (per zip code) also I currently invest in the Lansing area.Projects in the next 10 years (expected start and end date) Average household income Crime score Average home price Population growth past 10 yearsWho are the major employers And vacancy rate Job growth Tenet demographics& government and taxesAs Drew said, this is overkill...and you're missing a few things as well. 

We currently employ 6 techs.