You don't want to go nutz making all sorts of changes based on a brand new listing with few reviews.I think you are getting some great views and hopefully you will get some good conversion moving forward.

Speak to your CPA about this and also ask them about "converting" the funds to after tax funds so you can plan ahead of the conversions. 

If that is the case I would recommend a conversation and perhaps a revision to the current lease. 

Check with city building dept. to see if any past building permits were issued, maybe for the conversion to 2 family.3.

Sometimes a simple conversation will help your property manger understand how to better meet your expectations and adjust accordingly, and it's easier than switching to an entirely new company.

Conversely, if the federal 8582 shows zero unallowed losses, is the game over for offsetting gains at the state level even when the prior losses were not used to offset the gains at the state level?

Conversely, I also know people who find communicating with guests and cleaners to be incredibly draining, they don't know the first thing about managing an STR nor does it particularly interest them, and they would rather spend their time making money in their main job rather than taking on a side hustle that they may not be able to do as effectively.

WE are doing a den to Room conversion in North Scottsdale, In this regard do we need permit from City of Scottsdale  ?

We learned during the conversation that this was his entire life savings. 

Based on conversations, CRE could be a great option long term but I may be locked into a lower income in the short term and the potential for earnings are more dependent on my production in the residential space.