The key here is that STRs are treated differently from long-term rentals for tax purposes—they’re not considered passive if you materially participate and the average rental period is less than 7 days.

The key is knowing how to navigate them:🔹 Finding the Right Deals – The best distressed properties aren’t always the ones sitting on the market.

I can imagine this is a challenging decision to make.My thoughts:When hope is a key component of the plan of action, it is time to cut losses.

Here is how some steps are categorized.Performing Loan30 day lates90 day latesAssignmentNotice of Default VA loanNotice of Default FHA loanNotice of Default Conventional loanNotice of Trustee's Sale/Notice of ForeclosureLis PendensContinuation/PostponementLoan ModificationReinstatementBankruptcyAuctionReal Estate OwnedThere other possible steps, but these are what you will typically see.The key is to know what you can do in each of the steps in the state the property is in.Then you need to know what to avoid and what the options are for the owner and options available to the lender.

The key is not the number of properties.

Having connections in those markets is key. 

Here are some key challenges and strategies to overcome them:1.

The key is having a solid maintenance plan to keep things running smoothly. 

Population decline has slowed, and key neighborhoods are seeing real growth.

•Key question: Does the average household size in your area align with your home (900sf 2/2)?