Definitely is more work to get things set up however.

You can set it up so the seller is the member of the LLC that owns the property  so that if you are going under then the buyer is booted out of the LLC and seller takes over ownership.

Set up some bunks and a coffee maker, stock the fridge with some muffins and eggs and offer up as a fishing camp? 

It gives you peace of mind knowing everything is set up correctly and in compliance with local laws.

It is very simple to set up bank accounts, assign virtual credit cards, and tag revenue and expenses so you can stay on top of it.

@Neal DaftarySo - You need to set up a regular LLC, this would be considered the parent LLC to the following series LLC's that you will create for the specific purchases. 

**Lease and HAP Contract**: Once the property passes inspection, you can sign the lease with your tenant, and HUD will set up a Housing Assistance Payment (HAP) contract with you to begin rent payments.

But since you have lived in it for 2 out of the last 5 you would get that $500K tax free.You set up a situation where you qualify for both. 

There are a set of destinations in northern Wisconsin and Michigan that I think are potentially untapped STR markets. 

Others 15 yrs, etc.So we depreciate a portion of the asset costs faster.We do the study and get dollar amounts assigned to different parts and different schedules to front-load depreciation.Now you can get 5 or 6% of the value as a deduction in the early years...But wait... there's more.Bonus depreciation allows you to deduct a certain percentage of cost in the first year an asset is put into service.Anything that is on a schedule of 15 years or less...So the doors, sidewalks, HVAC, walls, latches, curbs, security, gates, etcA % of this stuff goes in Yr 1.For years 2015 through 2017, first-year bonus depreciation for these items was set at 50%.It was scheduled to go down to 40% in 2018 and 30% in 2019, 0% in 2020.But then the Tax Cuts and Jobs act moved this percentage to 100% from 2017 to 2022 and 80% in 2023 and 60% in 2024.Its not uncommon to allocate 30% of an asset cost to items that can be depreciated on a 15 year or faster time frame.So now 60% of that 30% of your asset's cost can be depreciated in the first year, excluding land.Pretty great.This is how real estate owners, investors, and operators make millions and pay very little in taxes compared to W2 employees.They pay even less and can offset other types of income if they are an RE Pro.