Quote from @Jake Bute: Good Afternoon,I listened to Wheelwright's podcast the other day discussing how short term rentals do not have the same rules as long-term rentals when it comes to some of the tax laws around active/passive investing.

I own 20 acres of land valued at approximately $80,000, and I want to build two short-term rental (STR) units on it.For context, my family already owns two long-term rental (LTR) units in the same general area.

The short version: save money while educating yourself on how to invest in real estate wisely, buy an investment property, learn how to manage it well while educating yourself on how to manage it better, save money . . . rinse and repeat.You don't mention where you are (education, income, experience, etc.) or where you want to go, so I can't tell you how to get there.

Create a short presentation that outlines your process and risk mitigation strategies.

Shortly after they all became vacant, I had to do the renovation work myself because of the lack of cash flow, and it took years to dig myself out of that hole.

I have not done much work to my personal home in Hollister since it wont make me any money in the short term.

But. that short of a hold period would be suspect by itself if ever audited.  

My focus has been taking abandoned properties and renovating to rentals, both short and long term.

20% is about average for a short term rental as far as management fees go.

I just keep using my rental cash flow to pay off these short term loans.