The hotel industry lobbied very hard for Airbnb to be shut down and their dollars were very well spent.I think largely the problem became that more and more people started using Airbnb as a standard vs before in the 90s STRs were more of an alternative.

I'm looking for growth and I'm currently thinking it'd be great to do something like a 1031 exchange of the property as a down payment on a medium-sized apartment complex.Other alternatives include splitting up the lot into two separates and building a second house.Thanks for any advice and let me know your thoughts!

As an alternative, you could be creative and do an impervious pavement, if the soil can handle the percolation rate...

I'm looking for Pros and cons and alternative suggestions!

You just need to factor in the different tax treatments, which is where people considering this option sometimes miss the boat.

If there is an alternative to this idea, I'm definitely open to hear it.

If you don't agree with the guidance I cited, may be you can look at this federal register that says the additional cost that can be elected under de minimis is the work performed before placing the property in service.https://www.federalregister.gov/documents/2013/09/19/2013-21756/guidance-regarding-deduction-and-capitalization-of-expenditures-related-to-tangible-property“The final regulations adopt the commenters' suggestions, in part, and clarify the treatment under the de minimis safe harbor of transaction costs and other additional costs of acquiring and producing property subject to the safe harbor…….The final regulations also clarify that additional costs consist of the transaction costs (that is, the facilitative costs under § 1.263(a)-2(f)) of acquiring or producing the property and the costs under § 1.263(a)-2(d) for work performed prior to the date that the unit of tangible property is placed in service.”It says additional cost includes work performed prior to the date that the unit of tangible property is placed in service.

The Met Coucil is not going to allow expansion of the metro due to high infrastructure costs (water treatment, sewers, roads).  

However, if your main motive is protection, you may be able to just obtain an umbrella insurance policy as an alternative.

Alternatively, maybe you and a friend can buy it together, less upside for you but also less risk and probably more buying power in the beginning.