Each individual mountain town also seems to have more strict STR fees than other areas I've looked into.I know you already said you wanted to avoid CO, but just reiterating that it's probably wise to look elsewhere. 

So, the terms of your lease should be catered to that, with very strict insurance terms, personal guarantees behind any company signing your lease, requirements that lessee handles all repairs and maintenance, additional security deposits, and I would go so far as requiring minimum review quality for the host, limits on quality of guests they can accept, etc.And to your point about Airbnb not doing background checks, you are right.  

These are professionals with additional training and a stricter code of ethics.

@John Michael RobersonI agree with @Kory Reynolds: tax-wise, it is a workable plan, as long as you are hands-off, which in technical terms is known as failing material participation.I would caution however against focusing strictly on taxes.

My understanding as to the reason talking to local inspectors was the updated building codes made them uneconomical; specifically requiring that buildings with more than 2 units have to have fire sprinklers.

On multiple occasions he had us wasting our time looking up unnecessary tax forms online because he wasn’t well versed in tax code.

Finding good renters is going to be every house hackers biggest concern.Since you are a private landlord, you can set you application guidelines as strict (within reason) as you need to feel comfortable.

Here's the New Jersey law regarding security deposits:https://www.nj.gov/dca/divisions/codes/publications/pdf_lti/... 

I purchased 2 duplexes in Morningside, Wayne County, #Detroit, Michigan (zip code 48224) February 2024.I am also an #Out of state investor.Both are currently going through repairs and updates necessary for the city of Detroit to give me the Certificate of Compliance for rental units.

However, there are tax code changes every year.