STR and MTR are still intensive, but we have a market well suited for this and have identified many investors from the Bay Area using this strategy.

Since they no longer need so many rooms and cannot afford it, they should look for a place that better suits their needs. 

As others have said, if you are looking to house hack, an LLC will not be best suited for you as you will likely want to go with FHA financing.

The big change is that what they're calling vacation rentals (full time dedicated STR's) will be separated from owner occupied, renting a part of the home (ADU's/in law suite stye STR's).

Now that you've expanded into a new venture, it's only natural that certain people are better suited to certain activities than others and a good accountant is no exception.

In my opinion those investors are best suited to hire employees or one man operations who behave more like an employee would. 

@Danielle Cage overall I agree with others here that you likely have a very challenging situation that is best suited to a fresh start.

I have funded i bet no less than 200 deals in the last 10 year that were from Aussies selling their home that is now a full reno.. many of them in their superannuation funds. ( US version of IRA )  just the dirty little secrets most wont talk about. propertyinvesting.com.auJust posted on there last week.It's completely dead mate.Such a shame.SomerSoft was big and they shut down also and re-started propertychat which is now huge lolBut literally no talk about investing in the US.Aussie's got burnt bad so it makes sense unfortunately Yep, $100,000 in Super for example.Property agreed cost $50,000 but provider put $100,000 on PA.Gave the $50,000 back to Aussie investor so they can cycle money "legally" out of Super.Was a nice little scam that suited many Aussie folks and property sellers in the US.Even tho the property they bought in the US was $#%@ but I guess that was the cost of getting money out of the Super prior to retirement age.

It may be better suited for a conventional buyer depending on condition/finance ability.  

It is not asset protection in the sense of protecting you from law suits.