Another consideration would be to look at it as a start-up expense if it's regarded as a trade or business (can deduct up to $5,000 immediately for eligible start-up costs).

There just simply isn’t as much money to be made for the average Host in 2024.This increased competition, lower rates and occupancy, overly optimistic underwriting and lower travel demand post COVID travel boom does warrant a reasonable label such as “Airbnbbust”.TLDRThe environment has fundamentally changed and operators have had to do a lot more than simply list a property to profit heftily.

You have the fundamentals to start :)

As mentioned above, USDA will not make you refinance into a loan if you want to rent out the property, but they do issue some warnings.When a property is no longer occupied by the borrower as their primary residence it will affect their ability to refinance the mortgage with USDA or continue to be eligible for servicing and loss mitigation options.

For example, if you rented for 25 years and then lived in it for 2 years, the capital gain exclusion you’ll be eligible for is 2/25 of your gain.

Are the fundamentals not there?

Cam  For NOO STR we'll need to make sure that you are purchasing in the correct zone to be eligible.

I would strongly agree that there are great fundamentals in the areas above but there are areas in those neighborhoods where some folks may not feel safe. 

Cost segregation is a popular tax deferral strategy and there is often confusion as to the difference between bonus depreciation and reclassification.Bonus DepreciationBonus depreciation is a tax incentive that allows a business to immediately deduct a large percentage of the purchase price of eligible assets, such as washers and dryers, rather than write them off over the "useful life" of that asset.

These expenses may also be eligible for bonus depreciation.