There are several STR's on AiR B&B that do not abide this; are they likely operating outside of permits or does the county make exceptions?

Give the cost of money these days is around 7%, it would definitely be nice to have a paid off rental.Like Tim said, the 7% is largely irrelevant because your tenants are paying it with the exception of vacancy periods. 

. - The payments are now 60-90%, principal, which is great, except for tax reporting purposes in 2023 showing a profit.- 2024 almost much every possible repair imaginable was needed among the units, so the headaches and costs were compounded - now the properties are buttoned up for the most part and we'll probably show a loss for 2024 taxes.- We don't cash flow at all because we were bullish on the BRRRRs and also did some flip rehabs using some of that equity and pocketed it years ago. 

Picking this one back up: Dallas has restricted most short term rentals except for in certain areas as of this past summer. 

Ugly truth is the vast majority of agents out there have no knowledge, conceptual knowledge, or exceptionally limited knowledge in this regard.  

They put new hardwoods throughout the house except in the 2 bedrooms which has new carpet. 

There are some exceptions to this but this is the general rule.The $150,000 hurdle shrinks to $75,000 if you are married but filing a separate return.Creating an LLC does not suddenly bypass this.In actuality, you created another filing requirement which your CPA will charge you an extra cost for. 

It has a typical unfinished basement with a concrete floor and there shouldn't be any reason to go down there except to do your laundry. 

Thank you everyone,  I appreciate all the help except for the first couple responses. 

Here are some things to look out for to help you know who to take advice from when you are just starting out:(Note: There are exceptions to every rule.