It seems like location would be especially critical with pad-split (and similar systems), but I’d love to hear your thoughts on what to watch out for in terms of zoning, safety, or demand.Also, I’ve traditionally rented out units the regular way, so I’m curious how screening tenants works for you with the pad-split (and similar) model.

Purchase price: $310,000 Cash invested: $50,000 Big Blue - 2 units fully rented, 1 with section 8 tenant and 1 unit being used for short term rentals What made you interested in investing in this type of deal?

I’m now working with a lender and terms are much different and costly. 

Glad you made your way here.. are you eyeing long-term rentals or short-term flips?

@Jordyn Ohsnot enough info to helpbut if you're using a HELOC for the down payment AND getting a loan, then you're probably negative cash flow given that's 100% leveragei would never do that unless i were going to refinance in the short term

Not only will lenders be effected, but borrower credit, business loans, inventory, and auto credit will suffer when those effected have to relocate, find long term replacement housing and their livelihoods and income are destroyed.

I have a lengthy Legal Opinion, from my seasoned Legal Team regarding this matter.

There is a distinct difference in the law between short term and long term rentals. 

Be mindful of recapture tax when selling but consider long-term strategies like a 1031 exchange.This post does not create a CPA-Client relationship.

Liquidity is important if this is money you plan to put to work in the near term.