Go buy a different lot and build it and by the time it will be done your daughter will have paid your rent for a year that you've declared on your taxes. 

I own a number of LLC's which are declared qualified opportunity funds. 

How much income do you declare?  

That would actually put you ahead $1800/year, in addition to whatever equity and appreciation gains you might have.Let's scale that up, pretend you are a real estate mogul who runs for president and proudly declares that you pay "very little" in taxes.

Have a situation in a declarant (aka developer) controlled condo/HOA.

The other thing I worry about is that she declared bankruptcy about 10 years ago.

A seller can declare a contract void in this state under 475.43 under certain circumstances.

You’re probably going to have to declare those utility payments from the tenants as income and pay tax on it making it even a little worse deal. 

Since regulation of STRs is fairly new and evolving, it might also be worth checking the minutes of recent Planning Board meetings to see if there has been any discussion on the subject, although it's probably easier to just ask whoever the Planning Board commissioner directly about that.If you are considering condos for STRs, you'll need to look through the Declaration of Condominium, Bylaws, and Rules & Regulations for any prohibitions against rentals and for any minimum lease terms. 

I don't know how that works but they won't like a new guy muscling in on them... are you dealing with out of state owners that don't have property management?