Let's break down the pros and cons of each approach:Forming an LLC in the State Where the Property is Located:Pros:Compliance with Local Laws: Establishing an LLC in the state where the property is situated ensures compliance with local regulations and laws specific to that jurisdiction.Legal Clarity: It provides clear legal jurisdiction and may simplify any legal proceedings related to the property in that state.Perception: Operating with a local LLC may give tenants and local authorities confidence in your commitment to the community.Cons:Additional Costs: Setting up and maintaining an LLC in another state means incurring additional registration fees, taxes, and possibly hiring local legal counsel.Administrative Burden: Managing multiple LLCs across different states adds complexity to your administrative workload, including extra paperwork and compliance requirements.Tax Implications: You may face tax obligations in both the state where the property is located and your home state, potentially leading to double taxation or complexities in tax filings.Managing Through Home State LLC:Pros:Simplified Management: Handling all properties under a single LLC streamlines administrative tasks, reducing paperwork and simplifying tax filings.Cost Savings: Avoiding the need to establish multiple LLCs in different states saves on registration fees, legal expenses, and ongoing maintenance costs.Consistency: Uniformity in management practices and legal structures may contribute to efficiency and ease of operation across your real estate portfolio.Cons:Legal Exposure: Operating out-of-state properties under a home state LLC may expose your personal assets to the laws and liabilities of the other state, potentially diminishing the liability protection the LLC offers.Compliance Challenges: You'll need to ensure your home state LLC meets the legal requirements for conducting business in other states, which could involve additional filings and fees.Perception and Credibility: Some tenants or local stakeholders may prefer dealing with a landlord who has a local presence, which could impact your reputation or relationships in the community.Ultimately, the decision depends on your specific circumstances, risk tolerance, and long-term goals.

@Brian Malavsky We actually have an attorney drafted lease that states the following "If the Landlord maintains the Deposit in an interest-bearing bank account, Resident consents to Landlord retaining the interest, except as required by law."

Provide Ample Notice: Regardless of legal minimums, giving your tenants more notice than required can help maintain a good relationship and give them ample time to find new housing.4.

Unless you have owned a property a long time, low leverage, lower expenses because the property has been well maintained and cap ex is low - that’s where the magic of cash flow happens.

I increase my current tenants but make sure to maintain a gap between market rent and their current rent.

Instead I focus more on building my knowledge, my skills, and building and maintaining relationships to give you a better chance for success. 

Understanding these rules is essential for investors seeking to capitalize on the short-term rental loophole while maintaining compliance with tax regulations.

Is the tenant maintaining a clean home, or do they leave food around that would attract pests?

How much concrete, asphalt or rock parking is around the facility? 

I know it's my job to maintain the house and property and I thought she was going to be a great tenant so I was always quick to respond and do what she asked.