Determining whether the venture falls under a service or rental business hinges on the provision of substantial services; for instance, if a bed and breakfast service is offered, it must be reported on Schedule C, triggering a 15.3% self-employment tax.Moreover, personal use plays a crucial role in the classification of the property.

And that is actually why I put that part in the post because that plays into my decision here. 

Decide which game you want to play.

A rent by the room or roommate strategy is great for expensive markets, making it more of an equity and cost reduction play for the long term.

I know you play ball in the field Engelo, so you need primetime ammo and artillery.

There has been an appreciation play as well.  

Get that outlined so you're able to play ball in the field and not get played.I invest on the side in private & public debt, take the interest payouts and buy into private & public equity and more RE.

I would also think that a sexual component is in play here being a pool area where people are scantily clad or maybe even skinny-dipping? 

This would only come into play or be worthwhile if your section 121 exclusion doesn't cover all your gain.

Obviously hassle factor comes into play with selling, doing a 1031 exchange, finding replacement property, etc., but from a pure math standpoint in my mind selling definitely makes sense.But I can think of multiple turnkey assets in Reno, NV off the off the top of my head that would produce this.