I've learned over the years that real estate investment is simply a math problem.

If you want to optimize you could identify the busy season and make that STR friendly and then the rest of the year block it for longer stays.

Imagine you bought a property for $2M.The land (excluding any structures) is valued at $400K.Since land is not depreciable in the eyes of the IRS, we subtract the land value from your purchase price to get your depreciable basis.Your depreciable basis is simply where a cost seg engineer starts from when allocating your eligible assets into either 5, 7, or 15 year property.In the scenario above, your starting basis would be $1.6M since your basis = your purchase price - the land value.Having an accurate land value is essential to getting your depreciation/bonus depreciation calculations right.This is the starting point for any cost seg study that you do.

If the inexperienced investor knew how much work, effort, time, analysis, negotiation, organization, capital, and knowledge it takes to successfully find, identify, evaluate, and close on a property that fits the criteria that gurus falsely claim they see 100’s of every day, 99% of them would abandon their real estate dreams” and pursue ostrich farms, mink breeding, or setting up a “down line” to sell condensed cleaning products that their “upline” has an exclusive distributorship on for the southwestern quadrant of Bisbee, Arizona.  

I've had some early success but thought I would put it out there:So simply put...

They may want to extend for a year after the 6 months at a discounted LTR rate or it is simply a transition place while they look to buy, etc

Right now, the technology is not yet suitable for small projects, simply because the transactional costs are way too high and there's no secondary market.

If you have the cash to complete the transaction as is, I would recommend simply paying the balance.  

I'm not going to do anything at this moment, but if I do not hear anything, I was simply just wondering what the options were or if anyone has had this situation before.  

The solution to this is simply!