Quote from @Michael Chalke: Unfortunately, Section 8 increases must be approved by HUD.

  - Options- increase rates and make more cash/profit. 

But the insane tax increases in Jackson County, Missouri (Kansas City) were deemed illegal:"Missouri’s State Tax Commission ordered Jackson County to roll back its 2023 property tax assessments, which raised homeowners property assessments by an average of 30% and more than 100% in some cases.

If it is less than 3 you are doing it wrong.Also, you should think about doing a light renovation and increasing rents.

To me that expense would negate the increased profits of STR, which is the whole point of STR. 

Between principal paydown and home appreciation, you’re still likely to make at least 40k per year, with that amount increasing to 46k in the second year and 52k in the third.To make this a worthwhile deal, I think you’d need to hold it for at least five years.

My assets have increased significantly over that time, so I can tell you from experience that you're on the right track!

And you can't buy it with your LLC to increase the value because it could be argued that it is not an arm's length transaction.

You will have an opportunity to refi sometime in the future where you can increase cash flow and/or recoup down payment. 

Even with the recent rate increase of the last couple of years, f/f is significantly below S&P lifetime return.