I then pay:- $1k to local government for a hotel tax (transient occupancy tax in order to operate my rental)- $4k to federal government estimated income tax- $2k to state government estimated income taxDoes this mean I can a) deduct $7k from rental income as other expense in schedule E?

This is the same way that hotels handle non-cancellable rates. 

@Rebecca Cramer I see shower wall panels in hotels often.

The risk of building a hotel a half mile away wouldn't be as risky as it would have been when you were just hearing rumors about the amusement park.

They give tourists an alternative option to boring hotels, while spending money at restaurants and other area attractions.

I think vacation rental homes are going to keep having demand, but there is some risk as hotels recover or if we dive into recession.

We just put down an offer on a smaller franchise-flagged hotel in Southern Illinois.If all goes well, in 3 months from now I will be a hotel owner-operator, and 6 months from then I can sell my house and cash out the ~90k in equity to put down on a professionally-managed hotel.

My and my partner's hospitality (hotel) background and my company's commercial expertise makes us a great choice for small to midsized hotels and motels. 

If you want to keep them you can possibly pay for an airbnb or a hotel.

Hotels are still struggling to get up to capacity due to staffing issues.