I’ve been keeping an eye on the short-term rental market here in Indianapolis, and it’s definitely heating up!

By definition, interpreting intentions is subjective.

You have gotten some great feedback here already, but since you mentioned the property is already listed, it changes some things.Reviews are definitely extremely important to the success of your STR.

You should definitely talk to a local lender.

Definitely a good problem to have even if it doesn't seem like it now, and wish you the best of luck! 

There are definitely some rough areas you need to be careful about though. 

The property has under produced based on the P/L of the last three yearsThat definitely changes the arithmetic.

When it comes to renting to Section 8 (S8) tenants, there are definitely pros and cons to consider:Pros of S8 Tenants:Guaranteed Rent: The government will pay a portion (sometimes all) of the rent, so you'll have consistent cash flow.High Demand: There's often a waiting list for S8 housing, meaning less vacancy time.Cons:Property Inspections: Your property will need to pass regular inspections, and repairs/maintenance must meet specific standards.Tenant Screening: Just like with non-S8 tenants, tenant quality can vary, so thorough screening is still essential.As for the down payment, yes, most lenders will require 15-25% down for investment properties.

Being thorough in setting up and researching will definitely set you up for success.

I don't want to give my opinion to you here based on my experience with clients but I would definitely ask your tax professional on their opinion because you might be surprised by their answer.