If it does happen with guest there, just get someone out to deal with it asap and move forward.

Running the numbers on paper is one thing, but actually securing bookings at your target rate is another.Sounds like you’ve got a good handle on your market and what your guests are looking for, which is key.

The keys words are liquidity and cash reserves.

Not able to move (at least for a while) due to my job.Looking to use savings that would’ve been for a primary residence down payment to invest in rental property out of state.Would love to make connections, hear thoughts on good markets to look into, strategies to maximize return, etc. 

It might be just me... but I don't think long term rental might be the move here. 

In the end, it cancels out any benefit.Loss of Key Homeowner BenefitsIf you sell your home to an LLC or S-Corp, you’ll lose:$250k/$500k capital gains exclusion on selling a primary residence.Homestead exemption on property taxes.Owner-occupied insurance rates, which are cheaper than rental insurance.Substance Over FormIn tax law, the IRS looks at the substance of a transaction, not just the form.

I would be more concerned about the brother in law potentially moving out mid-lease and leaving the couple.

I’m starting to feel a little confident about moving forward.

If I believe I can generate enough profit this year and navigate any potential inspections next year, I’d be comfortable moving forward—using the income earned to cover any necessary upgrades.An alternative exit strategy is to document the financial performance and sell the property as-is, highlighting its strong short-term rental income.Think through your next five moves, from best to worst-case scenarios, and make a decision that aligns with your goals. 

You can qualify for lower down payment loans, and after a year you can move out, keep the same loan terms and convert the unit you vacated into a rental.thank you!