So even though rent went down value went up with more desirable tenant. 

@David DachteraDavid, like Chris I also work in finance - I'm a financial analyst and set rates for a utility company and do financial analysis for a private equity firm.

Since my tax guy is of no use, I reached out to a friend who works for a different tax group/CPA and this new firm was kind enough to look into my predicament.

STR regulations are getting increasingly punitive in many desirable places North America and this is probably going to get worse because of the shortage of long-term rentals and the increasing long-term rents.

If you desire to get it by all means go for it - knowledge is power - but thats knowledge you pay for that may or may not pay off for you.  

And it makes it easier for an investor to roll their preferred returns back into the fund if they so desire.- Our current preferred return is 12% a year, for a 3 year term (keep in mind these funds along with the notes that they purchase exist within a marketplace so returns fluctuate depending on the offering). - ACH payments are received by investors on the 1st of every month, so participation in our fund is a purely passive investment vehicle that's open to accredited investors only (and like Patrick said above, accredited or not, anyone can purchase a note).As an added bonus, investors in our fund can redeem shares to purchase notes upon availability. 

To thrive in real estate investing, you must maintain a firm grip on your finances.

Some use them as rentals.the biggest reason for doing things this way is a traditional bank won’t loan on  property that won’t appraise at their desired price.

If your chosen market requires 2 or 3 flights with layovers, you probably won’t have the time or desire to get on the ground as often as you like.

While I can appreciate ones desire to own real estate, it is not the appropriate investment strategy for most who fall within this category & the consequences of a bad investment generally far exceed the potential upside.