@Theresa McGallicher https://www.biggerpockets.com/forums/530/topics/1056436-clearing-up-confusion-on-tax-treatment-of-short-term-rentals

Naturally.

You should always maintain a reserve to cover repairs, vacancies, natural disasters, etc.

@Craig LesslerYou should work with your tax pro to determine the proper treatment. 

A condo can be better with white, depending on the natural light, and small houses can take to colors well.

Understand what other development requirements are for the residential units, for example, each unit may require an advanced treatment septic system (if not connected to sewer already.

Just gonna wait it out for natural appreciation, cashflow and tenant-debt buydown.

Speak simply and naturally. 

If it is a normal 70/30 leveraged property, you may end up subject to tax on 70% of your returns anyways - so cost benefit, is that 30% tax free portion worth the high tax rates paid and additional filing fees to get tax free treatment on the 30%?

Id like to make clear that my niche market is heavy on cash flow given how very low the rental inventory is, and appreciation is slow due to the rural nature of the area.