As an investor looking to purchase an STR in a ski town, I’m not sure I’d feel that confident in a court deciding in my favor, personally.

I'm in a drive to beach market so I'm on it but I would think college towns, mountains etc. might be similar.

Hey Santosh,As of right now you're extremely exposed regarding insurance and I'm going to assume legally as well.If the home isn't registered as a legal multi-family with the town that's something you'll have to correct ASAP and make sure the home is up to code.Insurance wise as soon as they find out what you're doing they'll cancel you as the risk has changed from a single family owner occupied home to a multi family owner occupied home.

He believes that area where he will be buying the new homes is going to appreciate and attract more MTRenters, but now, the big difference is that he would now have 3 properties that can go up (or potentially down) in value, go up (or down) in rent, and three times as many vacancies to fill.My back of the napkin assessment is that for only a drop in $200 a month in cash flow, he would control a lot more assets with growth potential and as rents rise over the coming years, the combined rents will increase to a total more than the single rent.HOWEVER.

The regulations provide both insight and ambiguity.25% or more owner of the entity; OROne who exhibits significant control over the entity.

A lot of out of town investors like to buy property over here due to the cash flow that they can receive.

@Justin Goodrich I can speak for a lot of investors and say our biggest problems are out of our control. 

When I was 22 I had to move from my home town to Las Vegas in pursuit of HVAC trade school.

I will say we are way out of town with just a small market close so it makes sense to have a fully loaded house.We only provide 2 small soaps and 2 shampoo bottles in each bathroom.

I'm sure there are many more experiences where the contractor hasn't fulfilled their scope of work and gotten away with rushing the project to meet the deadline, And, I don't want to be as naive to say that I'm that 1% who can have complete quality/operational control, but I'm confident I can establish a system and hire independent inspectors to review the contractor's work.