I would also suggest you look into obtaining a HELOC on your rental if that property can support it.

@Grayson Wester I appreciate the support and am honored to serve.

@Philip Olivier  The city shutting off the power was when they started enforcing the new rules for short term rentals 2 years ago or so ago. 

You‘ll build trust with them as they get to know you and you can grow financially and know that they will provide support.

As per the tenant, he has to pay her child support but she continues to live in the house as she has nowhere to go with the kids.

Stop issuing 1099-MISC with box 7 "non-employee compensation" instead of box 1 "rent"Stop including refundable deposits in rent incomeProvide annual reports clearly delineated by propertyLearn the difference between maintenance, repairs and improvements and report accordinglyReport insurance reimbursements separatelyProvide supporting documentation: itemized contractor's invoices, insurance adjusters' reports etc

For those reading this, if you fail to follow the rules regarding LLCs, they don't do you any good.

Here are some rules to follow to mitigate risk if buying at this point in the cycle:Buy for Cash FlowMake sure your asset is spinning off plenty of cash to the point that you can experience a year at double the average vacancy rate and still be cash flow positive.

Airdna, rented.com, vacasa, evolve, and other major companies in the vacation rental space all have lists with supporting data about the best places to invest in vacation rentals.

If the $20k is used to buy another property, it could be deductible against that new property, requiring that you comply with interest tracing rules.