I ended up owning about 250 of these.. and having to sell them off taking loss's virtually everyone of them it was a blood bath for us HML in 08 to 2010.. and not anything I want to ever repeat.. those that started lending HM post 2011 have had the rising tide great market situation but even with the good market people fail all the time for various reasons. 

@Tommy BrantIt really depends upon the market, and I think the operator, their scale of operations, and their loss runs.We bought a deal from a mom and pop last year, and their insurance company saved us dramatically on pricing.  

On the other hand, a 24-year history with an 18% net IRR that includes some losses may indicate a more seasoned sponsor who has navigated multiple market cycles and learned valuable lessons along the way.Regarding internally managed operations, like property management (PM) and construction management, scale plays a crucial role.

Just food for thoughtTry to locate a copy of the lease or a bank statement with her deposit on it as others have mentioned.Best of luck.

What Zach is saying here is that you won't be able to utilize the "STR Loophole" which refers to using any net loss from the STR business to offset any income from other sources like W2 income or 1099 business income.

I would suggest this going forward, getting a PM, like someone else mentioned.I hope you find a resolution to this but as previous comments have mentioned settling sounds like less of a financial loss than to pay an attorney and going forth with legal action.

Could look at Food Truck rental spots. 

W-2 income, but it’s subject to passive activity loss limitations.

You would need to factor in the cost of the conversion as that would likely create a loss, then we would need to know your depreciation schedule.

Most of the ones we won worked out ok, but one wreaked so badly of cat urine even after stripping out all the soft surfaces we cut our losses and sold it to a handyman unfinished who wanted to live in it and refinish it himself.