An annual business tax as a hotel of $50 and collection and remittance of transient occupancy tax of 12% from renters is required of all short-term vacation rental operators.

What occupancy percentage and turnover cost did you factor in?

what really needs to be reviewed is why is it not going well and what is the plan - its very different plan when you cut distributions and do a capital call  to hold $4M to lower your debt obligation to allow for a refinnance compared to needing a capital call because you are only at 80% occupancy and anticpated 95%, rents are 50 cents a square foot less than you wanted and expenses are 25% higher....

USDA Loan – 0% Down (Rural Areas)Must be in a USDA-eligible rural area (check USDA’s map).Owner-occupancy required initially, but STRs might be possible later.5.

Do you own the entire building and have other occupants complained of a problem? 

Yes here's the issue and some comparison, perhaps these are inaccurate:- we already know class A property in west coast has cap rate of 4%, with the 100% occupancy , 50%LTV/4% loan, their DSCR is max at 1.4-1.5.

When you sign almost all mortgage closing packages, you are signing an Occupancy Clause that states you are intending to live in the home for 12 months.  

Demand and occupancy appears strong, but the numbers don't add up for me to justify the effort of STR.

Whereas owner occupant buyers are looking at comps, sold prices for similar nearby properties, and don't care about cash flow. 

Plus, professional management companies often have tools and strategies to maximize occupancy and revenue, which can offset their fees.