Some investors do fail in these areas, I again always partner with Section 8, it helps mitigate my risk, from where I stand.

But there's ways to mitigate some of that risk. 

With a C or D class property sometimes it makes sense to mix in some section 8 though to mitigate risk. 

Do you think property management, although expensive, can help mitigate the risk of getting a poor review if your STR is out of state?  

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We do all we can to mitigate it, but, you're going to get them eventually.

I need to buy more rental property but in LLCs to mitigate with depreciation the earnings from the stocks.

New construction mitigates maint. for the first few years unless you get a bad tenant.

Those don't get the standard MF treatment here either :(  And I suspect a commercial lender might look at the normal operating income of a property w/o the special AirB&B use (or use a mitigant as you stated) at least for the property value, because there is not a liquid market for AirB&B managed properties w/ experienced operators to continue generating that specific income, should the borrower no longer perform.Kinda like an owner-occupied commercial building.

Would like to hear other's experiences with this type of tenant base and how to mitigate these types of risk.Michael, thanks for sharing your experience.