I would love to own a beach house investment there, but as Trent had alluded to, I think it may be out of the budge, at least by myself :D.

If so, then what I would do is- 1) You mentioned 'wooded' lot, so depending on how much wood we are referring to, I would seek and get bids for selling the wood (I dont imgaine it would be much if anything at all cosidering .34 acres) additionally, you don't want to get rid of every tree; 2) When you split, you can certainly put restrictions in the new deed, i.e. any future structure being build most be between 1,000-1,500 sq.ft., must be single-family use... etc., etc. 

From talking with lender account executives, the most they will refinance and give value to is a single family residence with one ADU. 

However, I didn't mention that it's a sub to transaction because the seller told me yesterday he'd accept a sub to. I

My properties are single fam and small multi fam, and the type of tenant I rent to is quite different than the type of tenant who rents the multi fam units that currently have flat/deflating rents.

The concept you're referring to is likely related to the potential tax advantages associated with owning and operating a short-term rental property.

Whether it's an agency or the hospitals themselves, they seem very controlled into where they stay, however I'm sure they can move elsewhere if they choose to. I

Hi @John Morganto qualify as real estate professional here are the tests:Perform more than 50% of services in real property trades or businesses (“50% test”)Perform more than 750 hours of service in real property trades or businesses (“750 hours test”)Materially participate in each rental activity (“material participation test”)what I believe @Jonathan Bock is alluding to is the IRS is pretty strict on these tests and your wife will be expected to substantiate her material participation.

@Daniel Vineis, what lender is this that you refer to? I

I don't think anyone worth listening to is advising that right now.