I’m looking to raise $160,000 to cover the purchase, renovation, and activation of this new Airbnb property.

I use my license for multiple activities: Of course- comps, when buying and when selling, tax data- to see what I am about to pay when i own the home ( for long term holdings), check the DOM (days on the market) for the subdivision I am either buying on, or when I plan on selling, etc. 

Are there any challenges I might face, especially if my long-term tenants aren’t comfortable with the short-term rental activity in the same building?

Hey @Francisco Javier Villanueva,Glad to see you looking for events to get out and meet the people who are active in your area! 

One is humid and one is dry, the types of activities to do are different in each city, take a look at where you would be the most happy as well if you're going to be living there!

Also tweaking your pricing on VRBO and Airbnb so you are active and it pushes you higher in the search results.Tweaking the price that gets pushed to these platforms works as well.

However, the tax treatment differs between short-term and long-term rentals:Short-Term Rentals (STRs): If you materially participate (work 100+ hours and more than anyone else on the property), you may be able to offset rental deductions against W-2 or other active income, offering greater tax benefits.Long-Term Rentals (LTRs): If your AGI exceeds $100K, your rental losses may be limited, unless you qualify as a Real Estate Professional (REPS).If you plan to expand your rental portfolio, consider an LLC later for liability protection and easier management.

Either way, I'm excited to start my real estate journey and will try to stay active in this great community I've found here. 

Passive Activity Losses: Are there ways to offset my W-2 income with rental losses, or do I need to qualify as a real estate professional for that to work?

Hi @Katie Lyon,Properties are typically still selling in Cape Coral right now to active buyers, even with elevated inventory.