That's tough to answer without knowing the details of what happened.

It would be tough to make the case that you work more hours than your property manager, which is my best guess (for someone who is not a tax professional) as to what triggered the audit. 

Cash flow is tough right now! 

I will say Long-term rentals are tough to pencil in at the moment, but it can usually be done with a larger down payment.

I do a lot of direct bookings that take security deposits, but with Airbnb, they are always tough.

Thanks @Grant Rothenburger-I've learned many tough lessons along the way!

But if the market for large STRs is thin, the basement might not add substantial value.Selling: Selling could free up cash for other investments with better returns, especially if you’re uncomfortable with the low ROI and management required for STR.It’s a tough call, but if STR potential is there, it might be worth a trial period to see actual cash flow before committing fully to the basement investment.

@Chris PackerThis is a tough call.

Starting without cash flow can be tough, but if you're banking on appreciation and future refinancing, it can still work in the long run.

In general, it is tough to find landlords that will take Section 8 (at least at the level of house I provide, B/B+) and so you'll get plenty of interest.