@Marc Shin, Soundproofing is definitely something worth tackling for a short-term rental—it’ll keep your guests happy and help you avoid complaints.

That will typically generate a response from the PM to negotiate a settlement and avoid an investigation.

How do you balance being available around the clock with avoiding burnout?

I suspect that is due the psychological aspect in the appearance of it being cheaper in rent, because it's all in the same  area/complex. 

Eric, they have a version of the notes fund that avoids UBTI, but you need to ask for it when making the investment.

I'm struggling to understand some aspects of your response, but it provides some things to think about.

Less Desirable Areas: Are there neighborhoods we should avoid or areas where BRRRR might be less effective?

To avoid going through the same poor experience, keep reading.Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.It's often a case of not doing enough research, as they don't know what they don't know!

If I were in your shoes based on what you told us, I'd probably avoid hard money loans right now.

The aspects that would make me look very hard are: 1) how do I ever actually get my $$ back out of the UPREIT?