Same goes for number of LLCs and what to fund them with, since bear in mind that CA tends to be more cumbersome and expensive to have LLCs than other states.California is generally more cumbersome than other states when it comes to taxes and filings.

I don't think payment method has any bearing on giving a 1099 or not? 

**PITI is $522 a month (2%interest rate)** Actually cosmetically ready for renters and appears fixed up.On the inspection report the plumbing failed and it mentioned shifting soil in the foundation report. 

@Tushar P.Form 8582 is a federal form and has no bearing on state returns.

The tank size doesnt matter as much as the perk rate of the soil .  10 gallons goes in and it displaces 10 gallons into the drain field .

Bear in mind though that, when people say their short-term rental is profitable, the question is how profitable.

@Mason Bear how do you know the seller financials aren't "massaged"?

The issue will be, are they writing in FL. 

I've seen many owners in Vegas get big fines for operating illegal STRs.I own 2 STRs in Big Bear CA which is about 4 hours away from Vegas - aside from buying something you can add value to, I'd absolutely recommend not getting into somewhere too remote that it's hard to find good people who can work on it.

If the occupant claims to have evidence authorizing them to occupy the property, then they should bear the burden of proving their case.