As a rule, most areas will not cash flow if you're paying retail for the property.

In the commercial world, caveat emptor is the rule. 

So the enemy method is the way to get a good idea.Check AirBNB and VRBO and see what similar properties are doing in the area.Also, Louisville recently tightened up the rules around STRs so check with the city and make sure you are good to go for a particular property.

Now the strong agents may rule. 

To meet the "material participation" rules for STRs, there are multiple ways to qualify, but careful structuring is important.

The towns that do have ADU guidelines could completely change their rules.

Hone your Excel skills by creating pro-formas to practice your 1% rule underwriting while never touring a single property 4.

I'm a little surprised no one else has mentioned this yet, but if your agent is in compliance with the new rules, they would have had you sign a buyer-broker agreement before showing the house, and I pray before starting negotiations for you.

The bonus deprecation rules apply here and it would be a conversation you would need to have with your accountant as to what the best course of action is.

If the rules are not spelled out in your lease, he may have the right to keep it right where it is.