Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

It works like this:(1) Save up enough money for a down payment(2) Buy a single family home that you will Airbnb/VRBO(3) Ensure the “average period of customer use” is <=7 days(4) Materially participate (5) Cost segregate the property, resulting in large depreciation deductions(6) Use the losses from step 5 to offset your W2 incomeWhat makes this possible is that operating an STR is considered “non-passive.”

In that case, you'll strongly want to consider what putting personal-use property inside of an otherwise business-use LLC would do to the liability shield, as well as insurance and tax reporting.There are several considerations that can go into the analysis of whether you need an LLC or whether a large insurance policy will suffice.

Louis Insurance Services, or O'Connor Insurance.

STR, MTR, it doesn't matter, you can't house people there and would be in a severe insurance liability if something were to happen in an unpermitted addition or renovation.If it was permitted, you would use Furnished Finder for MTR.

If you are going to have trouble with sub to, it will from your insurance company, so I'd tread lightly for sure.

Quote from @Beau Guidry: I agree with all of the above and will add the exorbitant insurance costs are squeezing rental profits at the moment. 

@Nakul PatelBest asset protection is an insurance policy, you open a LLC then you are gonna have to pay like $850 a year for it if you are in California even if it’s a LLC in another state plus other fees and costs.

Zero tax state, no insurance or property tax issues like FL and TX. 

At some point bank has to know their customer and will ask why I get all these $50,000 checks, but no spend.