From resident rental to business/short term rental

[Suhaib Rehman]

All,

I own a 4 bed 2 bath single-story single family home in the Sacramento area—this I have rented for the last few years. Since I am not a real estate agent, I couldn't use the asset depreciation (QBI) as this is considered a passive income (or net loss in my case). 

I am considering a long-term rent out to a business instead such as a care facility.  I may also consider it for short-term rentals provided it its easier to manage, I live about a 3-hour drive from the property.

What are your thoughts/opinions? I am open to other suggestions.

Thanks