I did some digging and they had been operating for a long time and had numerous complaints filed. 

Although there are numerous safeguards, contracts, escrows, that can be used to mitigate the additional risk, that risk can not be eliminated.

Second is the ongoing rental stream.You will always "numerically" make more money developing/renting versus buying/renting. 

I believe that this approach minimizes downside by exploring the numerous currently for sale opportunities with assumable mortgages.

In the meantime I read every book I could find on commercial real estate; attended every commercial real estate meeting in the Houston area, and spoke to numerous commercial brokers.

Income received prior to that date would be considered rental income.Here's a good article on the facts and circumstances that would need to be considered: https://www.jmco.com/articles/real-estate/lease-options-sale...How it is ultimately treated will affect both the buyer and seller.

There are numerous factors at play and your real estate tax professional is best positioned to opine on that.

I noted numerous times that the more people add to the thread, the higher it will rank on Google and potential surpass the own company, but still, ye persist.Who in the world drops into a forum to dry run the leg of a company that the "believe they will be signing up for in the very near future."

Sharing an article published just last year on BP on this exact question:Short-Term Rental Loans: What Are the Options and How Do DSCR Loans Stack Up?

This is a safe place for my CO investors to vent.In all seriousness, the dramatic policy increases I have seen numerous investors stomach right now is making us all scratch our heads and wonder what alternative options are out there.