While the returns can be much greater, the cheese moves much faster in the game of short-term rentals, and the knowledge and strategy required when it comes to existing and future government regulation (on the city, county, and even state levels) is hugely important as one could get put out of business at any time.

This will help you and your accountant when you prepare your tax return.

If you think you'll be able to remotely manage contractors in Baltimore City, you will lose all of your money, quickly, it ain't easy, that's why the returns are high.  

The problem is that I'm running into issues with the refi process due to my debt to income ratio.I have a W2 job that pays well, but I also own a business which had some pretty steep losses in 2015 which flowed through to my personal tax return, and smaller losses in 2016.  

@Michael Lee Gunderson You're best bet - if you'd like to get decent returns - are real estate related investments, such as private lending, tax liens, and mortgage notes. 

If you spent it trying to find an incredible deal, that in itself would be a wish investment of three months - One with a pretty good return.

Here are couple of properties he presented to me:http://www.har.com/20610-alfonso/sale_27394662http://www.har.com/1931-jara/sale_36330833http://www.har.com/1839-jara/sale_54971563Are these worth pursuing with 25% down and a guaranteed lease agreement for the first 2 years with a return of 7.5%?

For AC, you need separate ductwork for supplies and returns between the units, separate blowers, and you also need separate cooling systems - condenser and coiling coil; you might be able to use mini-split units to achieve that.For hot water, you need the piping separate for the hot water, and then you will need multiple water heat sources with one per unit.

We are all seduced by the shiny metrics like cash-on-cash returns of Memphis, Cleveland, Akron, and just about any middle American rural city.

The difference in return that you make as a passive vs a sponsor is maybe 3-5% on cashflow and only 2-4% on IRR.