@Alecia LovelessWho's operating the heavy equipment ?  

As others have pointed out, interest income from a partnership can be classified as either "portfolio income" or "ordinary business income," depending on factors such as the nature of the partnership’s activities, the number of loans, and whether the interest is incidental to your main business or a core activity.

We operate nationally and I work with my clients in DWF out to Tyler and a bit in Houston.

@Chris Seveney I am not sure if you're hearing this more often than ever, but I hear similar stories weekly in about four markets I operate in.

The STR deal could be the best option if I understand your situation correctly, except I would probably do this as a cash-out refi and just use the combination of booking history + AirDNA projected income to qualify (if not operated as a STR for a year).

I am no expert (hence posting here) but the bit that I have read seems to indicate that if the business is located in CA and operating in CA (as is the case since the property is in CA), the business is likely to fall under CA laws in the event of an issue. 

I have investment properties here in Columbus, Ohio, which has seen significant growth, especially with tech giants like Intel, Meta, Amazon, and Google setting up operations, driving up property prices and job opportunities.

Regulation has slowed the market and made it harder to be an operator.I've never operated my Airbnb to its maximum efficiency because of the time it takes. 

At the end of the day though, you still couldn't operate a car well by just reading about it.

However, I recommend buying first and running a fully operational short-term rental business first or passing it to a PM company.