For example including a washer/dryer or allowing pets.

The tenant's month to month lease stipulates that the tenant is responsible for all utilities, including water and I recently spoke to them to tell them the water bill must be paid up and brought current.

The reality is that the tax impact and ability to take ANY losses (as Michael mentioned) is based on a number of factors that include whether or not it is a "separate dwelling unit".

COSTS:  I would look at any-and-all things needed to run an STR including items that are often done by owners--for example, property management.  

@Brian Raike Revisit your goals which you state include cash flow in the future.

The 100 hours rule can be satisfied as long as no one else (including contractors) materially participates more than you.

Are utilities included?

Financing options include standard 25% down, 30-year fixed loans, FHA loans, portfolio loans, private financing/hard money loans, and seller financing.

I'm looking seriously at expanding my REI business include buying, fixing and flipping REO properties!

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases.