However, shortly after beginning the rehabs, I realized they were going to take much longer than 6 months.

The tub reglazing will be the biggest cost and a shower curtain would cover the old tub from view in the short term.

Latest one I closed in July was at 6% rate and we consider the short term rental data including AirDNA, AirBNB etc while calculating DSCR ratios.

Also, there is IRS publication 527 (p527) Residential Rental Property.Otherwise in short, your rent less your expenses (generally mortgage interest, insurance, taxes, repairs) and less depreciation is your profit/loss for federal purposes. 

It was contingent and during the buyer's due diligence period they dropped the deal because the 5 small homes are considered nonconforming to be used as rentals.

What are you long term and short term goals? 

Purchased a single-family home used as a short term rental in the same area in 2021.

I’m curious why you wouldn’t just furnish and short term the other two units and leave it zoned residential?

(Been recently looking in Clear Creek County for a client, myself.)Clear Creek has a cap on non-owner occupied short term rentals.

By the way I have observed that comparing to last year same period, comparable SFH is cutting the price 10%.