You are telling the tenant in advance that they can break their lease at any time and get paid to do it.

@Adedayo Adetunji people that break into a property & occupy it are called "squatters".On September 24, 2014, three new Michigan Statutes went into effect to make squatting a crime and give landlords more options to remove them (see Michigan HB 5069/PA223, HB 5070/PA224, HB 5071/PA225).

🔒Let's break this down:Under IRC §469, rental real estate activities are considered "passive" by default.

Not considering it will take years of perfect rental with no vacancy or capex just to “break even” with where they are today. 

Consult with an attorney to provide a purchase and sale agreement in your respective state with an assignment exhibit included. 

As an aside, my laundry pods for the guests and liquid for the turnovers are "free and clear" and have never gotten a complaint.I have had guests break into my owner closets, but oddly never steal (they were kids probably looking for liquor). 

To set the scene: A cost seg study breaks your property into two important categories:1250 "real" property aka the building, foundation and other long life assets.1245 property aka anything that can be accelerated such as 5, 7, or 15 year property like carpets, cabinets, or other site improvements.

was there an agreement between you and your parents that they should share in the profits / losses of the airbnb / property.If there was an agreement, they should also be included in the LLC.It is best to discuss this all with an attorney.Best of luck!

My partner and I have ~20 doors in Columbus OH, and we are interested to expand our portfolio to Cleveland, including around Lorain and Euclid.

At a 7.5-8.00 interest rate you may be able to break even on a dscr loan.