If you are able to make considerable improvements in those first few years while living there, being an owner occupant during that time also allows you to take out a HELOC on the property much more easily than on something that's already a rental, giving you valuable access to capital for subsequent projects.

@Moises SalgadoThere are several considerations that can go into the analysis of whether you need an LLC or whether a large insurance policy will suffice.

We did our due diligence on this property and decided for the price point and the quality and all the other considerations we felt that we would get a nice return on this investment.

While this may exempt it from being classified as a rental activity, active participation remains a requirement, necessitating compliance with three tests: spending 500 hours on the property, dedicating at least 100 hours (and more than any other participant), and performing all the necessary work needed.Additionally, long-term viability and consideration of depreciation recapture are important concerns.

Go into your basement and measure the height of the bottom stair that sits on the concrete.

Investment Info:Single-family residence buy & hold investment in Cleveland Heights.

Also, in my experience, some tenants are willing to spend some more money in rent for a higher perceived quality than a competitive available rental, and/or may treat the property better with more respect, and/or may have a longer tenancy, or the property may rent quicker.So, the previous post’s comment, is incomplete and/or lacking some other considerations.

Furthermore, based on it's location alone, this property could be sold to a developer because of the unique zoning that has no limit to the building height built on the lot (!!!). 

It may be a "passive protest" of the STR.Check into fence height regulations and see how tall an obstruction you can put up on your side of the property line and have run the entire length of the property line. 

Do you have anyone you use for repairs, this will be a consideration done the road.Second, you will want to factor in reserves for the unexpected.