This was a fascinating thread to read, and we apply many of the same principles in our business (managing student multi-family ~500 beds spread across 8 properties).

If you truly want to protect yourself against STR regulations and ensure the value of what you purchase can be transferred (this last part is important) only buy where these three principles apply: (1) the use is allowed, (2) the use requirements are protected by in place permitting and licensing and (3) the permissions are transferable through a sale.

I ended up with 3 of the parcels (one owner paid before the foreclosure and they had to pay my attorney fees along with the principle and interest on the lien).

Assets identified in this study include:Bathroom Fixtures: Bathtubs, vanities, showers and toiletsStructural Components: Drywall, wood framing and interior partitionsBuilding systems: water heater, electrical distribution, HVAC, plumbingInterior Construction: Wood flooring, stairs, ceramic tileSmoke detectorsThis engineering-based cost segregation study included the following methodology:Physical Inspection through a site visitDocumentation review including architectural plans, accounting records and construction documentsA cost analysis which utilizes engineering principles in order to allocate costs to their applicable asset classificationsCalculation of the depreciation schedule using MACRSAs a reminder, bonus depreciation started to phase out in 2023.

I know everything may not go as planned but the principle and goal is the same.

The act of raising the rent can make some tenants move out of principle and if you don’t have a large tenant pool, you’ll just lose money. 

Standard heloc cost on a 100k @ 5%, 10 year term(int and principle)= 67k in interest.  

We don’t want to let her get away with this again and it’s more about principle at this time.

And thanks for the adherence to principles intended to keep BP free from “disguised” bias, @Scott Trench.  

Some people will leave because you want to raise it $25 out of principle and the longer it’s empty the longer raising the rent was pointless.