Spreading funds across 2-3 properties could provide diversification and steady cash flow.

While I do believe that some of the posters on BP are able to do a quality job self managing their portfolio of STR properties, they are spending a lot more time doing it than they’d like to admit.10 years ago in many markets STR provided outsized returns.  

So, your focus may need to pivot from high rental cash flow to little to no cash flow as a rental with an appreciation upside.I would recommend taking your $150K to $200K and securing a solid equity position in something that will cover its expenses and maybe provide a small cash flow, but then is poised to appreciate nicely over the course of the next several years. 

This is a physical asset, not paper, and it's providing consistent income.Albeit for your not understanding tax laws and depreciation, I'm wondering why there's a question as to what you should keep.You understand capital gains, but I'm pretty sure you're not familiar with depreciation and loan paydown.

All that to say, I'm not sure when they will want to cash in and sell the lot due to the appreciation the subdivision has provided.

Big things is be realistic on timing and maybe provide a mover and or storage unit deposit as they may not be able to figure that part out on their own.

Sorry if this is long winded I just wanted to provide a decent chunk of information 

You need to provide a certificate of occupancy.

@Morgan Vien For your Oregon rental property, forming an LLC in Oregon can provide liability protection specific to that property.

If we had hundreds of loans out, we’d have enough monthly income to aggregate the payments into additional loans—but we don’t.If you do this, your note will have to have a compounding clause in it, provided by your lending attorney.