STRs also make for a convenient scapegoat for the government when they need to divert attention away from their own policies that make adding more housing units more expensive/time consuming. 

MFH carries all of the emotional issues and local governance that tends to favor tenants over landlords because you're dealing with "people's homes", not an investment property.

Most halfway houses and similar stay solvent through donations, government grants and insurance billing.

A unit of government?

Undocumented immigrants often won't have any government issued IDs so it is a defacto fail.

I needed to provide vendors an “RNC” number that they used to provide the government with the expense.

Make sure the CCRs/ governing documents do not put limitations on use.

I originally set up my RE LLC through ZenBusiness.  ZenBusiness adds reporting requirements every year.  I received the following email below from them.  The rule went into effect January 1, 2024.
Have any of your al...

With a diverse background that spans over 14 years in business ownership, sales, marketing, media, and business development, I'm eager to bring my skills and experience into the BiggerPockets community.Before diving into real estate, I spent 16 years in IT with the federal government, and I'm also a proud Air Force wartime veteran.

The government and IRS got wise to landlords taking these direct payments and not reporting them.