I believe the other reason has to do with the fact that hotels are often run by hospitality management companies.That said, I tend to agree that if the Operator company of built solely for the hotel, then it wouldn't really make a strong case for actual separation.

There are certain neighborhoods that I would strongly advise against.

I'm currently based in Jacksonville, Florida, and I'm looking to connect with other real estate investors. 

There were an estimated 800 STRs operating in the township before the ordinance and based on a surge of new properties for sale, some of those operators are getting out. 

The city arrived at the $180,000 fine based on a $500-a-night penalty for each of hundreds of nights it tracked as booked at Tao's property, according to documents submitted to the City Council."

Quote from @Michael Morrongiello: That is also my understanding as wellThe junior 2nd lien gets wiped out it gets  wiped out from that property but the debt remains with teh borrower.. although unless its a commerical deal with a PG rarely do banks go after the borrower just based on the note. 

I'm based in Orlando and would be happy to chat about BRRRR financing strategies.

RPA is a Milwaukee based non-profit and your support is appreciated.We are hosting an emergency Zoom call tomorrow with Atty Tristan Pettit, anyone can join, details under RPAWI.org

Make your offers based on the cash flow that you need.

I would LOVE any local people to touch base!!!