Still too expensive for properties with small number of units.

@Cody Caswell depreciation, mortgage interest, insurance and one time expenses(non recurring) are considered add back expenses.

Not that I'm a proponent of borrowing just for a tax break, but the interest is a deductible expense. 

Hopefully, not an expensive tenant or Fair Housing lawsuit.100% of what @Travis Biziorek states is true, but he left out a key fact - he lived in the Detroit area when he started investing here, so was able to self-manage and meet everyone he had to hire face-to-face.

The least states:"Tenant shall pay a "late charge" not in excess of five (5%) percent of the amount in arrears for each month the arrears remain unpaid if any Rent is paid more than ten (10) days after the due date thereof, to cover the extra expense involved in handling delinquent payments.

Do you have cash reserves for capital expenses and improvements? 

Our biggest expense was replacement vinyl siding, which costed around $40K.

The Numbers:Cash Flow Analysis: Investors typically look for properties that will generate positive cash flow—meaning the income from rent covers the property’s expenses (mortgage, taxes, maintenance, etc.) and then some.

Use STR-specific insurance to protect both parties and automate operations with platforms like Airbnb, TurnoverBnB, and PriceLabs.Taxable income from the STR must be reported, but you can deduct related expenses like cleaning, utilities, and furnishings.

Research market rents, carefully calculate expenses, and ensure you have a solid lease agreement.