(not disagreeing with the idea of owning rentals, since that is what I do)Besides the real estate, I bake and sell gluten free cakes and cookies.

The icing on the cake is that they will include YOUR debts PLUS his debts when calculating the Debt to Equity ratio of the applicants.

If you call it a business shortterm rental, and use it yourself more than 14 nights a year, they may call it a personal property and disallow depreciation/expense deductions.Sounds like they're trying to prevent some "have your cake/eat it too" dancing on both sides of the tax deduction game.

I am from Anaheim CA.  

Lately I've become very interested in short term vacation rentals, as it is an absolutely exploding market, all over the world, and I think there are good opportunities around to grab a piece of that cake.

I think this is a situation where you could have your cake and eat it too.

I think my main goal is cashflow and having been able to turn a consistent 25% return in the stock market over the last 3 years has made me realize that I'm really looking for at least a 7%-9% Return on my Investment (appreciation just being icing on the cake).

Anaheim and orange county is a hot market so I see great opportunities once you connect with your motivated sellers.

Just finished a flip in Anaheim and looking for my next.

Cash flow (money left over) is icing on the cake.