There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

Over-inflating the purchase price to account for closing costs could be seen as fraud or could trigger issues with the loan approval, especially if the appraised value doesn’t match the inflated price.

I have the worst account rep that actually tells me to do things that are already there (like you should add a 10% or more discount for weekly rentals...um, did you even look at my listings first?).  

In some cases, gross income can include recurring capital gains or unrealized income, winnings from a day of gambling, rental income, and sometimes even interest earned on retirement accounts.

Your Net Worth ROI calculation takes into account the appreciation, loan paydown, tax benefits, and the rent avoidance (the difference in what you pay towards your mortgage compared to your rental situation).

But, property in certain specific parts of our country have shown price declines (in real terms, accounting for inflation) over the last 50 years. 

They would receive equivalent money plus an interest rate better than a savings account (plus less volatility if they wanted to put $$ into stock market).   

Additionally, you’ll need to account for "depreciation recapture"—the depreciation deductions claimed during the rental period must be taxed.For example, consider a property purchased for $310,000, rented for six years, and then converted into a primary residence for two years before being sold for $510,000.

Created an account just to share...

I have mixed feelings about this as I am of the opinion the government is generally not the best at administering things in the free market, however I have seen first hand some slum lording of STR's and unsafe practices.I think for now if you are in those TX markets you will have to play ball but I think they will keep pushing new rules on you until people push back.