Curious if other states have similar traps?

The numbers definitely work better once you factor in Section 8 bypassing the rent cap.

I’m mainly focused on securing the best option for my trapped equity.

I don't invest in section 8, but it helped me with some of class C units.

Not really looking to do anything other than dramatically lower my COL and escape the rent trap with this property.I've been to the property and driven around the area countless times and it feels so much less congested than Canton and Fells Point. 

Hey BP community,

I came across an interesting property and wanted to get some outside perspective before I move further.

It’s a single-family home that’s been converted into a 6-unit pad split. Each unit has it...

The individuals named as “Tenant” in Section 1 of this Lease and any of their children named in such Section 1 are the only individuals who may occupy the Premises, and the Premises may be used only as a private residence for those individuals.

Two bedrooms may or may not be in high demand depending on the supply of 2-beds in Section 8 in your area.

Bonus depreciation isn’t tied to whether your property is a short-term rental (STR) or medium-term rental (MTR)—it’s tied to whether the property is used in a trade or business and if you can establish material participation.Here’s how it works for you:Bonus depreciation eligibility: Any residential rental (STR, MTR, or long-term rental) can use bonus depreciation on assets with a useful life of 20 years or less (appliances, flooring, HVAC, land improvements, etc.) once you do a cost segregation study.Tax treatment:• If your rental is passive, those bonus depreciation losses are usually trapped against passive income only.• If it’s an STR where you materially participate (100+ hours, average stay 7 days or less, etc.), those losses can offset W-2 or other active income.• For MTRs (30–90 day stays), they’re generally treated as regular residential rentals, so losses remain passive unless you qualify for Real Estate Professional Status (REPS).This post does not create a CPA-Client relationship.

Big mistakes or money traps to avoid?