There are some great tax strategies for short-term rentals, but very important to be aware of the personal use rules to make sure 280(A) doesn't become an issue. 

Short-term rentals require adherence to specific ordinances, and forming an LLC offers liability protection but incurs California’s annual franchise tax.

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If short-term, does it match the exit time frame and strategy.

Start by deciding whether to purchase your first property, invest in a short-term rental, or build from scratch.

San Antonio for midterm and short term rentals.

•What types of properties do you usually focus on—short-term or long-term rentals?

The building is typically zoned and permitted for short term rental use, so there's very little chance you'd ever be banned from doing short term rentals if they crack down in that market (like they are cracking down in my market).Cons: They typically charge 25% (in my market, at least).

If we sell it inside a year (short-term), his regular tax rate is still low because he has no regular income. 

Hadn’t bought my first property yet at that point.I ended up breaking contract because of the roof but the short answer is that if you are going to rent a room in a basement it needs to have egress.