The main reason is other buyers who are better able to pin down operating costs will either outbid you because they have their costs right, or you'll outbid them because you have your costs wrong. 

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

But we are testing this now.We operate 7 str's out of state...

Don't bet on passive appreciation, just forced appreciation.

I was thinking of doing Airbnb arbitrage in Cincinnati but discovered that there is a restriction that the STR operator has to live within 50 miles of the property.

What are operating expenses of each?

It's finally a passive operation for me.

You will want to structure the LLC operating agreement where the lowest credit scores own the least in the LLC.

I bet short term rentals can work right in your own backyard!

I saw I need a TPT license to operate an Airbnb, do I also need a buisness license ?