If you don't materially participate (and assuming this is your only rental), then REP status isn't available.So, we typically see REP status with MTR and LTRs... but not needed with STRs.

----------------Vinod,I'm assuming you're referring to the properties in Ocklawaha. 

It's most common in the north-east.I assume you'll hire a home inspector.

That economic opportunity will continue to drive population growth...who knows how the next few years go, but long term is up and to the right assuming that you do not buy in bad neighborhoods/locations.

I assume you’ve got a loan that says you will be living there.

You're also assuming no defaults, or nothing going awry.

If they’re underfunded, you could get hit with special assessments.Not sure about the exact contract with the tenants, but I assume if there is any additional assessment, it would be tenants’ responsibility.Since you want to stay local and focus on cash flow, commercial makes sense, but have you considered industrial or flex space? 

I think it is trash and assume the tenant doesn't want it, does not meet that legal requirement.

Assuming since you did any FHA loan, this was a househack?

Assuming this is an 8 cap neighborhood you'd have a ~$420-450k value within a year (unless property taxes are crazy high) when leases would renew since it'd be valued as a commercial building with the office space.