Multiple reasons why - high turnover, language barrier, individuals not representative of your brand, etc. 

There are 7 material participation tests and these are the 3 most common for real estate investors AND you need to meet one of them: Spend more than 500 hours on your rental businessDo substantially everything for the rental businessSpend more than 100 hours on the activity and no one other individual spends more time than you doAnother way to offset non-passive income (e.g.

Even if STRs did unlock PAL (and they don't), out of state STRs probably will not work anyway, due to the challenges in meeting "material" participation test for out of state properties.

I have seen multiple things happen that are unexplainable.

I have seen so many "attorney home made" leases, some better than others, but what they all lack is they have not been "court tested".

Additionally, ARVs in these areas have a cloud of uncertainty so it will be prudent to be conservative in your analysis and have multiple exit strategies in place.If the home is located in an area with minimal impact from the storms, there has been a small uptick in pending sales the past two weeks compared to same period prior to the storms.

There are multiple resources to help you find a market and eliminate markets where you don't want to invest.

Contrast that to 2022 when units were getting multiple offers within hours of being listed. 

If both are franchisee's is one a multiplication owner and other is single location?

So I put that theory to the test and pulled comps using Zillow.