Utilizing empty lot space in this way helps to combat the increasing housing prices and limited supply many markets have been experiencing.

However, what if you prefer simplicity, limited risk, and are living off of the income? 

@Bryan Stengel, I think alcohol has been the tough one with the STRs, not sure about if you need license( hopefully someone will chip in ) , however there  always the liability part including but not limited to offering alcohol to people who are trying to quit etc.

This could limit reinvestment potential.

In my experience, most have limited product offerings.

Limited inventory typically drives up prices for both rent and equity, as high demand meets low supply.

The loss created by section 179 is limited to your total net taxable income amount from all "active" business income you have, plus any W-2 income. 

My belief is that if you can find a good enough deal, you can make it work - even with limited track record.

If anything, when you accept rentals in the higher-end neighborhoods, the rent rate exceeds the voucher limit, meaning the resident has to have their own income in order to qualify.

You have a limit if it is an ADU.