I have a client that bought a condo to rent after living there and the HOA ended up outlawing rentals.

Some of my clients I only speak with once a year if that. 

Recently one of my clients purchased a $120k single family house and is currently renting it out for $1550/mo. 

If the same client merely invested with a gains plan, or 25% return, they’d end three years with only $43,500, which is $130,500 less than flipping!

The client can always use their own funds to replace debt. 

I, my clients, my PM, have never had issues with it You are not clear with insurance companies by hiding it.

For what it's worth, I tried to run your numbers using the proforma I use with my CFO clients and I'm getting an IRR (average annual return) of nearly 23% (see page 2): Kalamazoo Properties

This can provide a better depreciation benefit than traditional STR real estate.If permanently affixed to land, it qualifies for real estate depreciation (27.5 years for residential properties).Considerations:Zoning laws and campground restrictions may impact legality.Self-employment tax risk arises if you provide substantial guest services.Vacation home rules apply if personal use exceeds 14 days or 10% of rental days, limiting deductions.Audit risk is high, so keep detailed records of participation, expenses, and rental operations.Given the potential tax benefits and complexities, consulting a real estate tax professional is advised to ensure compliance and maximize deductions.This post does not create a CPA-Client relationship.

I've sold over 80 homes personally in the last 30 months and I'm usually within $5k of the appraisal report when I run my CMA for clients.

We value the opportunity to work with clients and partners in the real estate community.To address @David Ramirez' suggestion, if any title issues are found, the earnest money is fully refundable.