However, if it's close or below, you may struggle with cash flow, especially when the interest-only period ends and payments increase.If you’re uncertain about rental income projections or want help analyzing the numbers further, I’d be happy to assist with more detailed calculations or financing advice.Best regards,Drago

It’s wise to have a financial buffer for periods without tenants.

Your tenant rents from you based on a rental period (ie. a yearly lease).  

@Bruce Lynn isn't there a shorter redemption period if the property wasn't homesteaded?

Do you prefer to have an open "application period" to collect applications and then make a decision based on the "most qualified" or do you take the first qualified, even if on a personal level they put off some red flags.

You could read 100 books and still need to learn more because certain things must be learned through trial and error.

Period.  

Some cliff notes:REP status requires 750 hours in real estate activities, and then after you hit that, the test is materially participating in your rental activities.If it is a short term rental with less than a 7 day rental period, if you materially participate, which could include at least 100 hours and that is more than anyone else, then yes possibly can use the bonus depreciation against other sources of non-passive income. 

Properties meeting at least one of the following criteria will not be eligible for Citizens Personal Residential Multiperil coverage:Rented to guests more than three times in a calendar year for periods of less than 30 days or one calendar month, whichever is lessAdvertised or held out to the public as a place regularly rented to guests

Yes you are giving up a rate that you probably aren't going to see again anytime soon, but as long as you aren't locked into an extensive penalty period you can always refi again if rates plummet to the point that it makes sense to do so.