Most major metros can handle MTR only and STR only--- it's a strategy discussion.

There are some ways around the rent control issue in my location by making the ADU an STR (not a long term rental) and apply for a license to STR on the ADU.

If you are putting your STR on Sch C and NOT providing substantial services, you will cost yourself money long term and risk the IRS reclasses your activity (which may or may not have consequences).Nonpassive does NOT equal Income from Self Employment automatically. 

Since you're not keen on long-term tenants, STR on platforms like AirBnB is a great option, especially given Carlsbad's allowance for STRs in the Coastal Zone.

Hi, BP friends. Husband and I are purchasing a property as our private residence that also has a small cottage on it we plan to STR. We plan to personally lease the unit to a newly created LLC and run direct expenses ...

But if it's strictly str only, no personal use, IRS seems to allow deductions and losses as any other rental.

But I don't see what what having or not having property management for an STR has to do with arbitrage of an STR.To me, my definition of arbitrage on an STR would be to rent a property from an owner as a long term rental and then turn around and do STR on it.

I currently have a llc in Illinois but will begin construction for a str on kentucky lake.

I would be wary of buying a home in a residential neighborhood in ABQ with the goal of having a STR: Only CA rivals NM in terms of economic governmental tampering.

Triggered the following thinking whether Syndications, LTR, STR on how the owners can be lazy using AI applications.Example:  My banker just installed AI software.