Recently I bought a home as I am bringing my parent to live with us we just need a more space.

I live in an apartment with 4 rental units and a studio.

If it is a cold day, a warm house with a fire live in the fireplace and the smell of hot chocolate appraises for more.  6. 

Given that 60% live on campus, that's 30,000 students in potential need for housing.

Where do you live?

Just to present an alternative point of view regarding California residents investing in STRs, I'd say the gambit still works and works well.For one thing, you still get to use the Section 263(a) tangible property regulations' de minimis rules, which probably mean you can immediately expense most of the furniture and fixtures in your STR.For another thing, while for your California return you won't be able to use bonus or accelerated depreciation for the personal property, you will still use shorter 5-year and 7-year lives for maybe 25% of the improvements.But the big thing: The federal tax bill is far, far bigger.

A furnished mid-term rental or month to month lease can be well worth the small incremental monthly cost for this flexibility if you are serious about finding a great live in flip candidate on your timeline, not that of your employer's. 

My wife and I don't go out to each much and we live relatively modestly. 

Quote from @Juan Perez: Greetings,My first home was paid off over a year ago, and I am now living in my recently purchased 2nd home.

You have the ability to sell while limiting your capital gains tax because you lived in 2 of the last 5 years.