In Portland, Oregon, where Chroma Property Management operates, that's an area of regulation, so it's worth looking into requirements in your market.

Most of our properties are mid term rentals due to local regulations.

You are in one of the heaviest regulated, litigious places on earth and need to know that the contract you use has been proven in court.

These days there are more and more municipal regulations that make me look elsewhere. 

If you go the self-managing route (highly recommended to save 25-40% of gross revenues), below are important points to know about self-managing STRs:Research local regulations to figure out what you need to do to have a legal STRResearch properties near yours on Rabbu or Airbnb to figure out what amenities sell and what you can add to stand outHire a professional photographerImplement a pricing tool like Wheelhouse, Pricelabs, or Beyond Pricing.

Private lenders are not regulated by TRID and therefore do not have to disclose anything to you. 

Right now finding a tenant in these areas should not be a problem given the macro environment.

My question is there anyone in the mesquite area that is aware any rules or regulations against renting room by room ( I haven’t personally seen any).

Normally, under the Tangible Property Regulations, both items will have to be capitalized and depreciated over 27.5 years, not expensed.

In general:-Always always always have primary residence first because when selling, first 500k (MFJ) is guaranteed tax-free-To become RE investor you do NOT even need to have rental, your primary is actually the best investment due to regulation above- In a decade, most houses are doubled or tripled in value if you bought at hot area.- When you plan to buy rental, buy rental that's cheaper than your primary- Depreciation is captured from building only on the first tax year so your example almost not possible in real world scenario- The PAL is extremely useful when you have other RE investments, this is what RE pro keeps doing to avoid large tax gains, for example if you have 5 syndication and 1 syndication post a hefty gain, the other 4 syndication PAL is used to offset that gain.