It really just depends on what types of travelers you're attracting to your units.

These areas offer a mix of renovated bungalows, new construction, and industrial conversions, with increased demand from young professionals.

Put the profit towards a new Primary residence and ~$50k towards a rental property.2) Rent it out and eat the cash flow loss, hoping rents increase.

I am getting increasingly serious about purchasing an office building here in Denver in the next few months. 

DSCR works pretty cohesively with hard money, especially when you use the BRRRR method since it allows you to increase leverage on the back end refi. 

However, if it's truly one of those communities that has very high crime and difficult to attract any descent tenants, it can lead to disaster.

@Coty LeBlanc I originally used it as a set it and forget it tool and it was better than not having I suppose, but then I really dug into training and learning and I saw 50% increase in one property and 20% in the other.

You are required to file a complete and accurate return, which means reporting the income that you earned along with atleast the direct expenses that you incurred on your rental.There are two comflicting forces - Your tax accountant wants to be aggressive with deductions because it will entitle you to paying less taxes(now or in the future).Your lender wants to see as much income as that will increase your Debt to Income Ratio(DTI).The good thing is that you can speak with your lender about 'one time expenses', that were only incurred in that year and are not reoccuring. 

The hot tub was just for the luxury of having it, but we justified the purchase by increases the AirBnb nightly rent.

That market from what I can see on the few trips I made to perform due diligence is really robust and such a pretty area I can see the attraction for those working in Tech or govmit in DC.