Renting part of the home after conversion provides additional income and deductions.This post does not create a CPA-Client relationship.

I like targeting outside of where I would live for SF and small MF (1-4 units) because of the lower entry price, usually higher cash flow since your rental income is higher relative to your debt service, and your appreciation potential is high if you can read the writing on the wall.

Thanks for the feedback; some quick stats: 9 doors across 4 states, about 50% LTV ratio with a Net Income of about 17% and cash on cash of about 3%.....in fairness those numbers include some overall business expenses not tied directly to one specific property.

Out-of-state investing makes the most sense for me—it’s impossible to cash flow anywhere near me, and moving wouldn’t make sense because I wouldn’t be able to earn the same wages or find the same kind of jobs.Before this purchase, I already owned two properties: a long-term rental outside Houston, Texas, and a short-term rental in the Sierras in California.

Due to the university there I worked with a lot of incoming families and getting what they needed for their dorms.  

Locally my observation is that the need is more for low income young and working vs college student.

Analyze properties by looking at gross rental income, operating expenses, and the debt service coverage ratio (DSCR above 1.25 for rentals).

This approach avoids downtime and lets you start earning right away.Future Bookings:Taking over bookings can get tricky since Airbnb doesn’t allow direct transfers between accounts.

Expanding your portfolio, streamlining tenant management, diversifying income streams, building a network, and planning for growth are also recommended.

Jaycee, it will likely be personal income with other money coming from a lender.