There is no such absolute rule or mandate for REI - it is up to you on your comfort level with your cash flow versus total investment versus appreciation potential.If I followed that rule, I would have missed out on a LOT of great opportunities over the years.We bought a house in Jones Valley in 2017 with negative cash flow - why? 

Or the rules change and the greater STR revenue is lost and you have to switch it to a LTR and hope for the best.

So if I understand this correctly, by qualifying to extend the 5 year rule to 10 yrs, $250k if single or $500k if married of proceeds from this sale would be exempt from capital gains? 

The general rule of thumb when using debt is to ensure that whatever asset you buy with the debt should make more than the debt service.  

Asking in the correct forum will get a better response.Read the RULES!

Just avoid self-dealing and follow IRS rules.

If it's an HOA-based one, or has some other deed restriction, get out of the position.

Hi Max, a good rule of thumb is to start with your target market/ideal guest.

I will not comment as to the tax laws and underlying rules - that is a discussion you can have with your tax advisor who presumably you are paying to help you.What I will do is provide practical and business guidance on tracking time.Firstly, there are apps available that can assist with time tracking where you can specifically detail your time, who you met with, etc.

I would not categorically rule out a triplex and/or quad plex though...