After reading the regs to become a REP for 2025, I realize there's no way I'll meet the "more than half" rule since I worked at my full-time job through 6/30.

This is my fourth house purchase, but the previous ones I renovated to live in.

Fourth, you can replace the tenants code but not the key itself so if you give the tenant a key you still need to replace the lock. 

@Michael Baum The fourth room is a large loft that contains a pair of queen bunk beds (hence sleeps up to 8 guests in that space).

Investor #2 had two BRRRRs under their belt, was actively renovating a third, and expected to be ready for a fourth by May.

I am thinking the fourth but am pretty flexible if another date works better.Thanks!

The key is to keep records like receipts, detailed activity logs, and anything tangible that shows the work they’re actually doing.Even for long-term rentals, tracking time and understanding passive vs. non-passive income matters, though the rules are a little different.This is one of the biggest tax advantages of STRs done right.

.• Are there any markets I should avoid right now due to instability, strict rules, or weak management options?

We had some smokers in our house once and I kept their $500 damage deposit for breaking those rules that are clearly stated.If you don't have a damage deposit, I would add one but I would also pull that Booking.com listing.

The most important rule is to have the cash flow of the new property be able to pay all its expenses, mortgage, AND the line of credit back.