I’m exploring a few options and would love to hear your thoughts on each:Airbnb Rentals: Is short-term rental still a profitable and sustainable option given current regulations?

This will be negative cash flow if using sustained maintenance /cap ex.

@Kash Tacke I'm a big fan of ADU's in general especially here in the mid west, yes you could potentially be on the front of the wave, but housing density is the solution to the affordability issue, anytime you are investing with affordability in mind is a great strategy to me, and sound like there are some incentives or at least supporting winds form the local city, that in itself seems like it would be worth at least approaching an architect or contractor to bid up some plans or concepts to take tot he city.  

That is the reality of these properties and why they are rarely sustainable even if they appear to be cash flowing.- It costs me me less to turn over my 1500 SF units that rent for $3k/m then it does the same size section 8 unit because the property is cared for better and experiences less  wear and tear while fixed costs like cleaning and painting are easier to absorb. 

They luckily took it in stride (and the grocery store is 10-minutes away) and still left us a 5-star review.But now, I'm wondering what can be simplified and what are more sustainable practices in the long run.

Year 0: ($2,000 - $1,700) x (1 + 2%)^0 / (1 + 5%)^0 ≈ $300 in today’s buying power.Year 5: ($2,000 - $1,700) x (1 + 2%)^5 / (1 + 5%)^5 ≈ $260 in today’s buying power.Year 10: ($2,000 - $1,700) x (1 + 2%)^10 / (1 + 5%)^10 ≈ $225 in today’s buying power.Year 15: ($2,000 - $1,700) x (1 + 2%)^15 / (1 + 5%)^15 ≈ $194 in today’s buying power.So, if you purchase property in a city where rent increases at a slower pace than inflation, the amount of goods and services you can buy will decrease over time due to inflation.Here is what I recommend:Purchase in a city that possesses the following characteristics.Significant and sustained population growth.Rapid and sustained appreciationBalance negative cash flow, interest rate buydown, and increased down payment to create an acceptable cash flow situation today.Refinance when rates fall to increase cash flow.

Policymakers, government officials, and business leaders can leverage this analysis to craft targeted strategies for fostering sustainable growth in the metros that drive America’s economy.Read the FULL STORY HERE

And a SUSTAINABLE approach to rental property ownership. 

With mortgage rates close to 7% and generally soft homebuying sentiment, strength in existing home sales is unlikely to be sustained," said Alice Zheng, an economist at Citigroup.

Do you think this trend is sustainable, or could we see a shift in the market soon?