I will take this advice into consideration.

His property taxes are half of mine and property is worth considerably more - his were roughly $2500 for $475,000 property. 

As you start you will want to take into consideration that many owners and hosts use more than just AirBNb to host their properties.  

Is there something I'm not taking into consideration?

In short, the market defines a bedroom as well as other considerations listed above.As a practical matter a bedroom should probably have a closet since most buyers expect one, but techni- cally the International Residential Code does NOT mandate a bedroom to have a closet.

Hello BiggerPockets Community!
I've been diving deep into the Albuquerque, NM real estate market recently and wanted to share my findings and insights with fellow investors. Whether you're a local or considering inve...

Is this something I should take in consideration? 

You may need an independent appraisal if the value of the property exceeds $5,000, as the IRS generally requires this for non-cash donations of significant value.Capital Gains Considerations: If you've owned the property for more than a year (which you have, having owned it for 10 years), the house is considered a long-term capital asset.

My guess solely looking at your numbers is that it's an older/distressed property which means you have to account for more costs in capex. 2nd thought being it's not in the best of neighborhood then you'd have to take into consideration lower quality tenants/ neighbors and maybe increase expected vacancy and late payments.

There are more location considerations.