While this approach often delivers the highest returns, it does require a significant investment of time and effort.If your time is limited, consider turnkey providers.

Even a DSCR loan requires a 1.25x DSCR ratio to pull your money out.

It's easy to obtain, costs very little, and doesn't require extra, on-going effort to maintain.

Fully understand what they can do to you and what is required.

To do this, you would use the underwriting and loan requirements provided by your loan purchaser, which may or may not align with your current criteria.

The prices I listed was to rent the garage as a garage, no bathroom required.  

I have researched the Airbnb avenue in terms of what’s required, etc.

The location you're referencing will likely require substantial rehab capital.There may be some out of state investor who hears NC and throws their money at a portfolio, but this feels like it'd need to be cash transaction.

For tax purposes, it’s about whether you pass the 750-hour rule, the 50% rule, and meet the material participation requirements.

But, it's a unique strategy that requires more knowledge than expected.