It’s worth the extra effort to protect your investment.

That has led them to continue to jack up rent prices and often, push out good tenants for the sake of an extra $100/month.

If it's a layered LLC, most lenders will need to trace a warm body on the operating agreement which will involve a bit more paperwork trail.

Same logic applies here as it does to your previous experience, there's just simply an added layer of the income produced by the property. 

If we need customized items, like a Leasehold DOT on an airplane hangar portfolio, then we (borrower) pay extra. 

They are paying you an extra 5% per month.

So yes no capital gains tax, and didn't put any extra principal payment.

But there are also some real challenges, like dealing with lower tenant quality on average, the extra red tape, annual inspections, and the longer time it takes to get tenants placed compared to the open market.

We have a duplex with an extra flagpole lot that we are hoping to set up with an ADU for short term rentals.

I did a survey last year and spoke to 8-10 lenders and they all said they wouldn't add extra value to the property based on it being a working STR.You need to check comps of other mobiles in the area of similar quality and price it accordingly.