Hello all,I've reached out to a few folks individually but wanted to start a thread on this as well.

@Jon Rosburg, I'm an agent for the STS, and it's true, we do have a lot of clients assigned to us individually, but not all of them are looking in each market at the same level or with the same focus/intensity. 

If you aren't securing properties at a substantial discount, you may end up maximizing the LTV, resulting in higher interest rates.

This works because, for short-term rentals, the IRS rules allow income to be treated as non-passive if certain conditions are met, such as offering substantial services and meeting material participation tests.

You can see regularly companies and some individuals here on BP that like to play games and it happens to them.   

I agree though, an individual condo unit purchase in an old building without the ability to do or understand your due diligence adequately is a massive risk.

And maybe individual lenders use tax returns not because they "need" them, but just to qualify a borrower.So - the only points I am making here are:1.

Thanks for sharing your perspective—it’s definitely insightful, and I understand where you’re coming from.While I get that partnering with one exclusive buyer might limit your potential profit on individual deals, couldn’t there be value in the consistency and reliability of working with a cash buyer who provides specific leads/addresses and is always ready to close on those deals?

The system in my multifamily building is that we have individual fire alarms in bedrooms and kitchens of each unit - those alarms are not wired to the central system.

The key factor is ensuring the property qualifies for favorable tax treatment by adhering to IRS rules regarding short-term rentals and material participation.For the 7-day rule, the IRS requires that:The average guest stay must be seven days or less for the property to qualify as a short-term rental.If the average stay is 30 days or less, you must provide substantial services similar to what hotels offer, such as daily cleaning or concierge services.Regarding material participation, to further classify the income as non-passive, you must meet one of the following criteria:You spend more than 500 hours actively managing the rental in a year.You manage the business yourself and spend at least 100 hours, with your involvement exceeding that of any other person involved in the rental.Please note there are actually 7 ways to qualify, the above two are the most common.