We would be very greatful for any guidance on how to property treat the initial downpayment, and monthly transactions.Thank you!

Your income is treated as active income and taxed at ordinary rates instead of the passive income we are used to with LTRs, but there might be more deductions you can find as well.After all that, if you know you want to do STRs in the long run, now might be the best time to make the jump.

@Wayne Brooks As far as lenders go; a foreclosure, short sale, bankruptcy or deed in lieu are treated the same.

As I understand the ESA Laws in Texas if a pet is a qualified ESA then you can't treat it as a pet at all.

The most powerful is simply keeping your properties in good condition, treating residents with respect, and following the law. 

Like you said, if promissory note is treated as the same as mortgage, then I got my answer. 

All my other PMs treat cash flow each property separately.  

I want to get involved in the plans for the future, the financial goals of the owner, protecting the longevity and condition of the properties, maximizing income potential while also treating tenants like paying customers with fairness, care and respect.

If the property is treated as passive, then, you are correct, that it is not eligible to offset other forms of income.If the property is treated as non-passive(active), then it will be eligible to offset other forms of income.

It is far, far more important to focus on knowing the law, obeying the law, and treating your tenants honestly and fairly.An LLC is useful for two things: anonymity and legal protection.