It would in theory be great for STR income by limiting supply, I’d think.We foresee buying and holding indefinitely, but of course we are also thinking about exit strategies should something catastrophic happen.

Like @Dave Spooner said, the way to indefinitely defer gains from the actual sale of real estate is using the 1031 exchange which allows you to sell investment real estate and buy investment real estate while deferring paying the tax after the sale. 

Also, if you sell without doing a 1031 tax exchange, you are paying a lot of tax now versus deferring it indefinitely.

An assumption with both is that you want the relationship to continue indefinitely and you are already set in terms of wealth. 1) you are 100% self serving, while keeping the other partner incentivized to keep making you money. 2) the other partner is a personal/family relationship and you want to earn a return on your money and maybe keep some equity but, again you’ve made your wealth elsewhere and you just want to help them be successful.

@Steven Wilson yes, the plan will be to hold onto this home (and loan) indefinitely.

I have several clients doing the same thing moving to the Boise area now that their jobs are allowing them to work remotely indefinitely.

There is a big marketplace for used appliances so you can always sell them, I understand your concern about them sitting, the dryer could sit indefinitely and the washer would be the main item of concern that I'd just sell Like others have said, you ultimately picked these tenants out of the 50 applicants you had.

edit: Do you plan on doing by-the-room rentals with the property indefinitely?

On both the upstairs and the downstairs I finished the remodel the day before tenants moved in, definitely stressful but talk about efficient margins!

Under the current system businesses can indefinitely pay property taxes based on their 1978 values (plus an increase of up to 2% per year or the level of inflation, whichever is less) unless they make additions to the property triggering a reassessment.