Thanks, @Elvis Witcher What is the status of your question?

Does your lease have the tenant responsible for the actions of guests and are to enforce the provisions of the lease with the guest? 

“Essentially, they are cutting in line,” Mills said, referring to the super-lien priority status over a mortgage.

More people are wanting to get into the STR game and if an area doesn't have enough guests to support more and more competition, I can see this happening.Good job on recognizing the trend and getting out while house prices are still high in the area.

Well, I'll repost here what I originally did in response to the email from Vrbo that some people got saying Vrbo was giving a promotional discount to prospective guests, and hosts could opt out if they wished. 

2- what is the percentage of people that get audited my claiming REPS status to offset W-2?

The biggest thing I'm seeing actually isn't his residency status, but I think you'll have the biggest issue with the value of the properties you are looking at.

But what you’re encouraging is that when I am 23, I should use the first 4 or so years just building a portfolio of LTR’s and then when I am 27, look into leveraging STR’s to meet the “Real Estate Professional Status” and “Material Participation” the IRS outlines, correct? 

In over-saturated areas like Scottsdale, hosts are often asked by guests to discount their nightly rates (especially for extended stays) and many hosts accept the discounted rates because they know that if they deny the request, the guest will simply book with a different host that will extend a discount.  

These areas won't give you cash flow without significant downpayment, but their price/rent ratios are much more friendly compared to other cities in the Bay Area and you can also benefit from their appreciation.Another thing to put on your radar is the Real Estate Professional Status (REPS) election.