Hey now - how can you say they aren't working?

Write it up to an education, spend some time sharpening your support team (particularly in the trades) and start thinking about how you can do it again!

The area has too much wealth and great education system to suffer any type of huge adjustment.

Increased revenue and decreased parking demand allowed us to carry income-restricted units as well.We originally planned on spinning it out into a brand, but we never had the bandwidth to do so.Our largest hurdle has been education as most of our tenants are coming in to rent traditional units.Investors did not love it. 

Too many newbies seem to think they can blindly follow "old" advice in today's real estate market and be successful.Many, basically get taken advantage of by those in the industry that have an incentive to keep newbies blind to new realties, just to keep their good times rolling.What many newbies have figured out is that they can't make the numbers work on rental purchases in their states - like California, Arizona, New York, New Jersey, Washington, etc.What they have NOT figured out is that if they go to cheaper markets, they aren't being shown Class A rentals to buy.

They do seem like things I need a little more seasoning on in terms of education.

I assume there is zero or almost zero appreciation and that’s the reason you aren’t selling tax free?

Unless they are on the poorer end renting furniture from Rent-a-Center they aren't likely wanting to pay to rent someone else's furniture.

Are there any challenges I might face, especially if my long-term tenants aren’t comfortable with the short-term rental activity in the same building?

Meaning educating and providing resources is complimentary to his own investing.