Existing homes are either torn down to build higher density housing or to build luxury homes.

@Arnie GuidaThe luxury, if you want to call it that, of being a lawyer and a landlord is that court doesn't bother me.  

. $300/month typically = Class D (very minimum appreciation, war zone), negative monthly cash flow = Class A (best chance at appreciation, luxury neighborhoods)...typically.

url=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2018-04-23%2Fnew-tax-break-for-poor-neighborhoods-may-benefit-luxury-builders&data=02%7C01%7C%7C9fe98d94544b4ff9ca2c08d5a91b3ed8%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C636600856837433664&sdata=F%2BuQ%2B7BNcW3DihBSZZglOMJtpYNpiypea299jqu4rlQ%3D&reserved=0

I would like to turn them into luxury style white cabinets.

I run a boutique luxury marketing firm and my client just listed a $90,000,000 oceanfront property.

Overall, support was really good but they seemed to have trouble keeping sales people at that time (several years ago).As for what taxes you need to pay, I would check the state and city tax or revenue websites for guidance on lodging tax.

It would be nice, but I decided to take cash over the luxury.  

Service animals (e.g. guide dog for the blind) are covered by ADA and must be permitted in public spaces, defined as an inn, hotel, motel, or a lodging offering short-term rentals that operate similarly to a hotel. 

We've had realtors approach us about clients wanting to rent luxury homes in our area, so we could probably generate positive cashflow on top of the tax sheltering.