Did the proceeds from the sale count as short term or long term capital gains?

You get a deduction for the contribution, the gains grow tax-free and as long as you use the proceeds for health-related expenses the funds come out tax free as well. 

I understand that completing long distances BRRRRs is a different kind of animal, so I am hoping to glean insight from investors who have successfully gone down this path.

My idea to achieve this is to convert the studio into a short-term rental.I’m trying to determine if I’m forcing this deal to work by relying on the short-term rental strategy or if it’s a reasonable approach given the numbers.

At the pro forma income, the cap rate would rise to 8%, which is more reasonable but only achievable after renovations.

For me and my goals, I focus on long-term investing in residential single-family homes in Florida and Georgia.

Quote from @Frank Pyle: Obstacle is getting a 1007 with realistic long term rents. 

I'd like to achieve this within 10 years. 

It's not hard, just takes a few minutes.Like I said above, I haven't been STR hosting for long.

Start small, focus on building relationships, and take advantage of Conroe’s growing market to achieve your goals.Good luck!