@Carl Stenberg I can understand why management LLC's are utilized if there is an ancillary business that can operate on its own, but most on BP form management companies for asset protection despite adding no true benefits.

Have you done any detailed research on land availability near Sedona, regulatory issues, builders for the type of property you are contemplating, conservative revenue forecasts based on actual comps, cost of a support network (cleaners, maintenance, etc), cost of utilities?

If the basement apartment has separate utility meters, you can deduct the actual costs.

It provides much needed “liquidity” in the market place; sets a baseline for “quick sale” pricing; and provides an out for people who can’t utilize broker/MLS, or who need a fast close, as is.  

HI Kev, we helped a lot of luxury STR investors this year utilize the accelerated deprecation tax incentive, I would actually suggest checking out the bigger pockets featured tax preparer section and sine it's likely a considerable reduction definitely not try and do it yourself..the investment in high quality reliable tax advice is essential to any investor tool kit. 

**Furnishing and Utilities**: My property is fully furnished, and I plan to include utilities.

The 8 mos isn’t quite long enough to utilize just the STR income to qualify but many lenders allow AirDnA projections to be utilized as the income to qualify.

In our previous example of $4k net monthly income the disbursement would be as follows: $4,000 Net income$1388 principal loan repayment to majority partner $1305 (50% of $2612) to majority partner$652 (25% of $1305) to each minority partnerAs your parents, they might not require or care about the same rate of return, or a return at all (except the equity position) especially if they're planning on utilizing the property for personal time.

If for some reason I can't get a utility turned on, I assume that the utility itself inside the house is faulty and will need repair/replacement and adjust my offer accordingly.

One of which you mentioned, PM Fees, but it will also have other expenses such as repairs, improvements, utilities, etc.Therefore, your cash-flow will be several percentage points in the negative.Should you invest?