Full time investors are already buying the dip, paying 10-15% less in many markets, and adding 10-20+% in value...both of which help mitigate valuation risk.We need to spend less time discussing "the market" and more time on "investing" activities. 

Finding the right deals and doing the right renos will ensure you mitigate your risk.

@Angelleena Arevalo One thing that I have seen work to mitigate risk of potential squatting is to have longer stays check out at 28 days and then check back in.

All that being said, the strategies we're considering are: 1) Airbnb-ing both units, but limiting upstairs occupancy to two guests (still allow 4 downstairs).Pro: Still optimizing revenue with STR, noise mitigated by limiting upstairs guestsCon: Miss out on opportunity for up to 6 guests in 3BR upstairs.2) Long-term rental upstairs, STR in basement.

@Tony Capra if the situation is right your tax advisor may want to look at the S Corp but also weave in core tax mitigation techniques

To mitigate this risk, my lease contains a pool addendum/liability waiver and the pool area has signage containing "pool rules".

There are always ways to mitigate risk-- if you're worried about someone being locked out and calling you at 2AM-- get a lockbox or hide a key.   

Or for those who do not have other mitigating financial prowess to offset the lack of equity up front.

Don’t get me wrong, studying helped me mitigate some risk and learn some strategies that saved my butt.

My question is… has anyone else run into this issue and how did you handle it… aka mitigate it?