Quote from @Lisa Albright: Hi All,Newbie here, just a quick question we are building an addition on our second home, we have a primary residence, and two rental properties.

In Denver metro area, for instance, the city of Denver only allows short-term rentals in a primary residence.

But that will only give me $150 cash flow towards my new rental.

2023-2024 DECIMATED my already broken finances and killed my 15 yr run being debt free with paid off rentals and a house near the beach in the Ca.

Getting a rental license as an out-of-state investor is doable, but you’ll need to manage inspections and compliance.

My personal goal is to build a rental protfolio, but I'm open to anything.Thanks in advance. 

So, your focus may need to pivot from high rental cash flow to little to no cash flow as a rental with an appreciation upside.I would recommend taking your $150K to $200K and securing a solid equity position in something that will cover its expenses and maybe provide a small cash flow, but then is poised to appreciate nicely over the course of the next several years. 

Ensure your contractor has a clear timeline, keep extra cash reserves, and start marketing your rental rooms early. 

Buy an umbrella through your personal lines agent with a rider covering your rental.

@Christopher HeidrichRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.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 property in Class D area to Class A standards, what quality of tenant will you get?