If you have a track record and a decent amount of equity in the property most services will let you exclude TI from your payment.

Annualized return should be in the 7-10% range excluding appreciation and ability to refi in a few years. 

@Nathan CoxThe "2 out of the last 5 year rule" in real estate allows homeowners to exclude up to $250,000 ($500,000 for married couples) of capital gains from the sale of their primary residence if they lived in the home for at least two out of the five years before the sale.

This off season, mission beach was the most dead since the Great Recession (excluding COVID lockdown periods).  

You do not have to exclude the portion of the house for the capital gain.

I had not considered that because I was imaging a deal where they purchased with a loan and the lender would not have accepted excluding issues like this.

Some people think you can just move into a rental for 2 years and all the gains will be excluded.

Bids usually always receive the generic counter(unless you bid 20K on a 100K property but even then its probable)  The counter will almost always be in the 88% range-You agent knows the next morning excluding weekends whether the bid was accepted so you are not getting the entire story

The "2 of the last 5 year rule" in U.S. real estate allows homeowners to exclude up to $250,000 ($500,000 for married couples filing jointly) of capital gains from their income when selling their primary residence, provided they meet two criteria: they must have owned the home for at least two years and lived in it as their primary residence for at least two years within the five-year period ending on the sale date.

Excluding primary residential areas, there is little risk of legislation negatively affecting STRs in those towns.