I have been actively engaged (important distinction!) 

Both of which can and do eat up investors profits.Keep in mind there is a distinct difference between buying and supplementing rental income on a single property as opposed to investing in income properties.

Is there a legal distinction between renting out multiple rooms in a house verses renting out multiple units on a property?

Each is a very distinct market with different rates, as well.

At 500+ square feet, separate bedroom and living area, full size kitchen, automated processes and an electronic guest/resident communication, office only open during regular business hours, much smaller staff, and long average length of stay, it's unlike extended stay hotels which have much smaller rooms, no or limited separate bedroom, no full size kitchen, open 24/7, bloated staff, much lower length of stay, and high opex ratio (which is a big distinction). 

~Annette Its bad marketing and misleading broker - DSCR Loans need to be crisply defined as residential investment property loans (traditionally 1-4 unit, recently expanded just a touch to 10) as distinct from Multifamily or Commercial Loans which generally are for larger properties or multifamilytried to do so in this articlehttps://www.biggerpockets.com/blog/what-documents-do-you-nee...Multifamily Loans which traditionally are anything over 5 units and/or over 3 million loans are not "DSCR Loans" these are a totally different loan product. 

I get the distinct feeling you want to be able to use it from time to time.

Absent fraud, or heavy co-mingling of funds to the point where there no meaningful distinction between the business and the owner, the law dictates that the corporate veil holds up.

Loan Selection: DSCR loans tailored to short-term rentals have proven effective for me, especially when certain lenders can use AirDNA comps for evaluation.Insurance Consideration: Prioritize short-term rental insurance with substantial liability coverage to safeguard your investment.Ownership Structure: Opting for an LLC provides advantages in terms of tax and legal matters, enhancing your property's protection.Competitive Market: Given the growing competition in this space, ensure your budget includes distinct features and amenities from the outset.

However, the regulations in each municipality are very strict and distinct.