Slightly increased the offer to quickly go under contract, but still had inspections and everything done before completing the deal.

3) If their handyman can't handle a repair issue and they have to hire outside contractors, many PMC's will then charge a markup for their time - but they don't tell you this upfront or disclose in their management contract.

This should clarify whether the charges align with your contract.

Contracts are the best.

Of course, every owner's situation is unique and factors like the legal entity involved, purchase date, adequate passive income that can be offset with the cost segregation study, etc., will need to be considered.

We have a large piece of land undr contract that we'd like to develop for IOS.

If you can add a legal ADU at $25k in the Austin area then you should add it.  

If the purchase is done in cash, as you mentioned, they’d have more flexibility, but they’ll still want to carefully consider the tax and legal implications of the subsequent sales.I hope this helps, and good luck with your client’s deal!

.#10 CONTRACT - make sure what you are doing STR is listed in the contract - typically in the addendum section.   

You and your legal, tax and financial advisors should review this transaction in greater detail, especially the PLRs, to ensure you understand the significant risks involved and are structuring the transaction as close as possible to the PLRs to mitigate some of the risks.