If they were separately metered, each tenant would pay the $116.50 base fees and their individual use, which would be 3x higher than what they pay when sharing a meter.There are many options, but don't make it more complicated than it needs to be.

Preferably, not already operating as an STR so that you can gain the value you add by creating it. 

I would also argue that there are plenty of landlords out there that have rentals which are currently below market rental price.I assume that this part of the tax code was created to prevent those with multiple homes from letting relatives live in one for almost free, while potentially hiding that rental income and not having it registered as a business and pocketing the money.  

If this passes, there could create a BNB crash on PR, or move it into the black market cash business.

@Gavin Wynn how I work with my investors is to identify an ideal cap rate usually around 7 and we create a criteria for our ideal property.

John, QuickBooks Pro will allow YOU to CUSTOMIZE it by YOU creating DEFINE FIELDS (blank fields that allow you to input data you want to create) that no other software program will allow you to do.I wanted to see my tenants move in date, Security Deposit, Rental Amount, Move Out Date, etc. 

They can provide guidance based on the latest tax laws, regulations, and your individual circumstances.

Or god Forbid you put some equity into the deals.. the idea that you can buy reahab and refi and not have any money in the deal works in very specific markets it simply does not work in most though so you dod the deal and maybe you get 70 or 80% of your cash back if you want to break even or cash flow positive.. if you want all your money back then U take negative cash flow until you refi and rents rise both might happen in a few years.. so temporary negative cash flow.Virtually every investor on the west coast that is paying wholesalers or off MLS etc with all money returned on refi or minimum down will be negative cash flow for a few years.. but then appreciation kicks in and thats were real wealth is created not making 200 a month.

Excess business losses are capped for single individuals at $250,000 and for married individuals at $500,000, with any surplus being suspended and carried forward.

*This post does not create a CPA-client relationship.