When a rental is taken out of service for personal use the accumulated depreciation goes away over a short period of time. 

Purchase price: $310,000 Cash invested: $50,000 Big Blue - 2 units fully rented, 1 with section 8 tenant and 1 unit being used for short term rentals What made you interested in investing in this type of deal?

Conventional 5% Down Loan (Owner-Occupied)If you live in the property for at least one year, you can use a primary residence loan with as little as 5% down.After a year, you can convert it to a short-term rental (STR).Loan types: Conventional (Fannie Mae, Freddie Mac)2.

Additionally, the beach is still within reach...just a short 1 hour flight or 6 hour drive.  

As I see it, the only ways that real estate pays you well in the first 3-5 years is low to no leverage or a strategy that requires more work (short term rental, mid term rental, rent by the room, etc.).  

Short term leverage inherently increases our risk. 

so short window I suspect the marketing will start in earnest on March 15th though !!!

These properties are now rented as long-term rentals, and we plan to expand our portfolio while also branching into short-term rentals.Looking back, I realize how much my current knowledge and experience could have fast-tracked our success.

In short, you ride the 'coattails' of the previous owner's taxes for the first year.  

But your colleague may have been confused about Short Term Rentals (STR).