It’s crucial to ensure that you’re compliant with local zoning laws and HOA regulations related to vacation rentals, as these can affect your ability to rent the property.Overall, while it can work well, especially if you're looking for income from rentals, make sure to have a clear understanding of the financing rules, potential restrictions, and the financial risks involved.

And both types take into consideration projected income but the residential loans go against my DTI.

They are your best option, because when you have tenant turnover, at least you will still have income from the other units.

If STR material participation requirements are no longer met, depreciation deductions may be limited, impacting how much you can offset against active income.

The catch is it must be vacant 90 days and winters in Vermont are expensive to heat the building so the pipes don't freeze requiring costly plumbing repairs.So this property may be eligible for up to $130k in grant money and rental income guaranteed by the state!

@Marc Zak Using an LLC for each property provides strong liability protection by isolating risks to individual assets, with income and expenses flowing through to your personal taxes on Schedule E.

Then my passive income would solely come from stock investment.2.

Even if you own a property in TX, you are conducting business in CA because you live here, collect the income here, etc.

I believed I was putting that hard-earned money into something secure.

@Charles Perkins is absolutely correct about "collecting all receipts, properly tracking all income and expenses and your basis for all assets properly documented and recorded."