This happens if the property won’t be used for personal stays and is strictly for generating rental income.3.

Saturation/competition and regulation being the 2 biggest challenges.

What's more, there are some pretty strict rules about how many replacement properties you can identify and when.

The suggestion to "expense everything below $20,000" flies in the face of the regulations.

A great property manager ensures compliance with all relevant regulations, which helps to mitigate risk for the property owner.5.

Properties in areas undergoing revitalization are especially attractive for investors looking to buy low and achieve high nightly rates.Regulation-Friendly Market: Compared to many other large metros, Indianapolis has relatively relaxed short-term rental regulations, making it easier for property owners to get into the market without facing excessive restrictions or permitting hurdles.

Mitigation Strategy: Implement value-add strategies like property upgrades, which can allow for certain rent increases within rent control regulations.

Local Regulations & Market Conditions:In areas where vacation rentals are regulated or oversaturated, factors like legal compliance and market competition can have a bigger impact than ratings.

Albemarle county tends to have pretty strict regulations when it comes to zoning and building.

Each of these markets has its pros and cons, from rising property values to varying regulations on short-term rentals.As for financing, beyond traditional mortgages, you could explore DSCR loans (especially useful for rental properties), private lending, and even seller financing.