Return:Finishing the basement and adding bedrooms can add significant value, especially if your local market places a premium on additional living space.

Are you wanting to find something within an hour of where you live or are you open to something farther away?

Since comps are limited, analyze similar nearby locations to estimate demand.When pitching investors, focus on a clear business case: expected income, expenses, occupancy, and ROI.

The answer is yes, but it is generally found when the owner is also living in at least one unit (aka "House Hacking").

I recently paid someone to do my roof and replace the carpet (~5k expense) on my short term rental in 2023, however he won't fill out the 1099-NEC.

Or enter "for repairs" and take photographs of expensive new stuff for court...but they may be paying down credit cards.

Those that own it can be harder to sell as the cash flow from the business will cover the debt service for the business, but not for the real estate.Example: I had a very high-end assisted living facility on the market. 

I noticed their business is listed as an LLC on their Zillow profile, and we also found that they have a few other unrelated LLC businesses that didn’t seem to work out for them over the years and were short-lived.

I'd look at the closing docs for something related to the pro-ration of expenses etc and see if you have anything there that could be a clause you point to for them to cover those payments. 

Hey @John FriendasI have purchased 4 of my Co-Living (rent by room) properties with DSCR, 1 of them within the last few months.Not that I necessarily recommend this, but there are short-term-rental DSCR products.