Highway hotel on busy 35 highway. 19 hotel rooms plus owners apartment, large laundry room with commercial washer and dryer, large parking lot, front desk, lobby, roadside sign.

They are a commodity, and owners are competing directly against hotels in this space, so rents are ultra low.

It also let's you find out how involved the owners of the company are.8.

It is my understanding that the new owner will have the house at the cost basis of my purchase price, for calculating capital gains taxes or depreciation.For gift tax purposes for you - FMV.For capital gain tax purposes for the recipient - your original basis/purchase price 

How does that work when you are not yet the legal owner of the property?

We negotiated a deal with the owner for 20% Equity, we are responsible for infilling the community as well as property management (which we also get paid separately for).

We negotiated a deal with the owner for 20% Equity, we are responsible for infilling the community as well as property management (which we also get paid separately for).

The 4% and 6% rates are just the names given to differentiate commercial and owner-occupied.The 6% rate is obviously significantly high, but it's fairly average nationally.

Questions they will have is who is the owner, what experience do they have, is their key person insurance against them etc. 

I would also add that you join your local REIA chapter (Real Estate Investor Association) as it will allow you to network with other STR owners and get more location-specific information.