Now I spend 5 years hoping they make their payments and somehow refinance to pay off the balloon. 

These areas attract long-term tenants who are willing to pay for quality housing​​.Mixed-Use Properties:Properties that combine residential and commercial spaces offer diversified income streams.

You have to pay depreciation recapture and gains on the pro-rated time it was a rental.

For example, if you manage the rental yourself then you won't pay a property management fee.

The few lenders that offer no seasoning, they typically make you pay for it in high rates / fees.

We've since increased their rent to market rate, and now we're experiencing late payments.Family Member as Tenant:Issue: Our family member is behind on rent for more than 5 months, with a rate below market due to their relationship with us.Behavior: They have made excuses about financial struggles, yet have been seen treating their new girlfriend to fine dinners and outings.Impact: Both tenants consistently pay late and have shown complete disrespect to us, the property owners, despite efforts to ensure their happiness and success.We'd hate to impact our relationship with them, but right now, they're hurting us and our pockets. 

You could also use a listing-only service from a brokerage where you'd pay them $200-$300 to list it on the MLS, and you/your team would take all incoming calls from interested buyers, but it's a bit slimy since the seller may see it listed on the market when you appeared to be buying it.That would be the maximum value-capture of your off-market lead machine.

Hey @Justin Brown, what @John Underwood said is spot on.SLC has been restricting STRs for a long while now and it isn't going to get better.People who have STRs in areas where they are not allowed are breaking the law and will eventually pay the price.Having said that, you should check and see if there are certain areas where it is allowed in some way and that is why they exist there.

Unfortunately this market doesn’t appreciate that quickly, but I possibly may do that in 2-3 years depending on the market, debt pay down and the interest rates at that time. 

The unit is part of a condo association for which we pay fees.