Stay cautious and establish a good rapport with tenants to mitigate potential risks.

In the experience, there are some contractors that overpriced to mitigate the risk of the unknown.

For too long many GPs and LPs had too cavalier of an attitude for the risks, and too many GPs made poor risk mitigation decisions and the LPs didn’t know any better.  

Now it's a underlying land, legal, economic, and ability to mitigate rising accommodating prices to manage properties.

@Melanie Hernandez two questions to ask are: can you effectively and profitably run a STR business giving your guests a wonderful experience and can you provide value to and mitigate risk for your property owner?

How can I assess its potential and mitigate risks effectively, especially given its location?

I have learned to mitigate risk with smarter purchases, reserves, reasonable down payments, built-in gains, solid income stream, and not biting off to much at any time.There is risk in everything, but these are large investments of time and money. 

By showing the full 1099 income on the return, it helps mitigate the risk of IRS flags or inquiries related to unreported income.However, it's worth noting that the IRS typically matches 1099 income reported by payers to the income reported on taxpayers' returns.

It's a widely held belief that you can mitigate this risk by making a purchase while a rate is known and then if rates go up you are locked in, if they go down and you are able to still qualify, refinance to a lower rate.

Are coastal areas still good investments, and what are some ways to help mitigate these cash flow risks that are mostly out of our control (in my opinion)?