The risks, such as triggering a "due on sale" clause and complicating your taxes, often outweigh the benefits. 

There are several niches that we will explore and focus in order to be successful, but we have found that we typically see returns of 2-5 times of our original investment.The challenge with entitlement is there's definitely quite a bit more risk involved as well as a very complicated process (hence the higher return). 

I agree with those above that it could be complicated but I'm not in this space.

Property tax reassessments have also resulted in higher taxes for many homeowners, further complicating the financial equation.While efforts are being made to bring more insurance companies into Louisiana, the relief has been minimal.

This is easier for someone who earns a fixed salary, no overtime, no complicated pay structures, not a business owner, etc.   

Turns out the financing piece is a bit more complicated when using a SDIRA, but still a great option to add some diversity to your rental portfolio.  

I do not want the hardwired combo (more expensive and complicated to install) - From what I've read, hardwiring is required for multi-family housing, but I don't see that it is for single family residential.

@Remington Lyman please ignore, its complicated...i will post back once we close the deal on what we had to do with zoning etc... many lenders decline to fund the loan as the zone was commercial and fanni and freddi backed lenders would not do commercial zoned properties...

That is a tall order, people should expect in some towns your kids can't buy in and its not because of STR it is because the property has a higher value.Now in AZ you have a snowbird issue that complicates your STR market.So this like many real estate issues is local. 

Looks like more complicated circumstance than I expected.