Starting March 2025, Freddie Mac and Fannie Mae will enforce new lease standards for multifamily properties seeking financing, aiming to bolster tenant protections.

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord.

To protect against this, it would be necessary to add no-subleasing verbiage to the lease.

That way, your money is protected by real estate without doing all of the work.

There are numerous state and federal laws related to buying and selling mortgage notes as well as originating mortgages/contract for deeds etc.You have Dodd Frank as well as numerous other consumer protection laws that you have to deal with. 

It seems like it is more at the behest of the hotel industry and the few permit holders wanting to protect their captured audience, because they strictly disallow hosted STRs, whether that be an ADU, extra room etc.

The best option for you depends on a number of factors including your exit strategy, any liability concerns and preferred tax treatment.Type of EntityTax TreatmentMain AdvantagesC-CorporationDouble TaxationCorporate tax rates are lowerS-CorporationPass-throughSelf-employment tax savingsLimited Liability Company (LLC)Pass-throughLiability protection and flexibilityFuture Outlook and Recent Tax Law ChangesMost recent tax changes applicable to real estate investors include:The increase in the estate tax exemption to $13.61 million per individual for 2024.

Set them up for ASSET PROTECTION, NOT to hide your identity.  

David Valadao, who recently toured the facility, expressed strong support for the initiative, emphasizing its potential to reduce legacy emissions and protect local energy jobs.

This is to protect sellers but also to encourage buyers and agents to have necessary conversations about how everything works, before jumping straight to house hunting.At the end of the day, I believe the industry will adapt quickly, and these changes can be a positive thing for all sides.