Grandfather rules rarely apply or work for STRs in most locations and apply to existing STRs there.

Need to apply to your specific situation.1.  

_____________________________________________________________________Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

The income necessary has a wide range depending on loan terms and house hacking where rent can be applied to income requirements.   

While the 1% rule would hopefully apply to an investment property, it certainly would not apply to my situation if I kept renting, as I would only be paying ~$1,600.Let me know if I am misunderstanding. 

Unless your Heloc rate is well over 9%, youre better off just applying your excess cashflow toward paying down the Heloc balance, which will immediately reduce the interest that accrues the following month.

It would just take longer without guidance.My experience is that someone has to actually apply what they are taught “consistently for a long period of time” in order to become successful, The mentor is there to help them along that path.

Are there general rules that apply about this, or is this a lawyer question?

Your CPA should apply these passive losses now that the activity has been fully disposed of, ensuring the gain is correctly offset.This post does not create a CPA-Client relationship.

@William SilvaRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?