@Al JeciusAre you in City of Flagstaff or Coconino County for zoning purposes?

This protects against potential claims and liabilities specific to the rental.For tax purposes, maintain clear records of rental-related income and expenses, allowing deductions for insurance, utilities, maintenance, and depreciation proportionate to the rental unit.

You can choose to report your income and expenses on Schedule C by electing to file as a Qualified Joint Venture instead of filing a partnership return.If you have created an LLC that is not in a community property state, and as husband-wife you are the only members, then you are a partnership and must file a partnership tax return unless you have elected to treat your LLC as a corporation for tax purposes.If you have created an LLC in a community property state, and husband-wife are the only members, then you are a partnership and must file a partnership tax return unless you have elected to treat your LLC as a disregarded entity or corporation for tax purposes.

,Renting your primary home back to yourself isn’t typically allowed by the IRS for tax purposes, even if structured through an LLC.

Those property use codes may come in handy for other purposes, such as when my municipality is aiming to ban STRs.  

Hello Michael,I echo Jon, completing a 1031 of a single rental into DSTs in straightforward however we typically recommend a portfolio of DSTs for diversification and financial objective purposes.

The longer you hold the property for investment the easier it is to demonstrate that you did in fact intend to hold the property for rental or investment purposes. 

Lau, generally if you are financing with a commercial lender- we lend for business purpose only and a rental property would fall under that category.

The process seems daunting and overwhelming, and I am not confident I will put the time in to talk to sources, analyze, and find properties for investing purposes.

Most purposes that people on the BP forums are transferring properties to an LLC, would be exempt of the Due On Sale Clause.