In that case you already did them a favor by letting them use it.I never anticipate rent increases 2 years out because I have been able to increase rents by 10-20% some years.

We don't anticipate selling them anytime soon so the 2 years would not be restrictive.We don't live in a community property state.

Just not sure what to anticipate with what the value could potentially be over the next 5 to 10 years if I hold the property instead . 

it's just easier and comparatively less risky than the more advanced strategies...House hacking still takes significant due diligence, skill in analyzing the market and the property, time and effort to learn about tenant screening and property management, the ability to anticipate appreciation/depreciation trends, etc., etc., etc....and even with lots of skill and preparation, things willstill go wrong (vacancy, plumbing leaks, bad tenants, unanticipated capex, furnaces that kick the bucket at the absolute worst time, etc.)

In this environment I wouldn't put all my eggs in the STR basket.If your insentent on this then you must put a lot of effort into vetting the area, the rules, the property etc to make absolutely sure a given property will cashflow with conservative numbers and what your exit strategy per property is if they don't go as anticipated.

They are revising it but I anticipate it will be a significant increase at some point. 

That way we get eyes on everything and things don't build up making that final clean far more expensive than we anticipated or budgeted for.

Also, knowing your customer will allow you to anticipate the rental experience and what types of tenant issues you might encounter (e.g., 19 yr old college student tenants are COMPLETELY different than 35 yr old traveling nurse tenants)…and lastly, it’s superimportant to know your customer, because in this case, you will be LIVINGwith your customer!

Sounds like she may have financial problems or is anticipating something popping up in the future

The question you should be asking is1) What type of liability exposure would I be generating and will an LLC or Corp be suited for that.If you don't plan to own the property, I can't anticipate a piece of paper causing much liability, if any at all.2) What type of income would the tax liens be generating and would an LLC or corp minimize the taxes.