I know that most people who OWN a property and put it on airbnb claim the income on Schedule E ("passive income"), which avoids having to pay the 15.3% self-employment tax.I'm wondering if those who are practicing rental arbitrage by renting the place that they list on airbnb also claim the income on Schedule E, or if you claim it on Schedule C bc you don't own the place that you're listing on airbnb.Whether you own or rent the property that you list on Airbnb, the activities are the same: acquiring the property, furnishing it, activating utilities, listing it on Airbnb, hiring cleaning services, etc, etc.

If that doesn't cover the principal balance plus all accrued interest, exit fees, yield maintenance, prepayment penalties, default interest, advances made for unpaid property taxes and insurance (even forced placed insurance), advances on senior loans, foreclosure costs/fees, toxic waste cleanup, costs of resale, the list goes on and on...the lender can sue each and every one of you for the entire unpaid amount.The way this would likely play out, should the lender elect to enforce the personal guarantee, is they would file suit naming each partner as a defendant. 

More specifically, how many years of tax returns is needed to be shown to qualify for a cash-put refinance?

@Dominick Tonnarini, The only issue with your plan is that you will have to pay a sizable tax on the sale of that property when you do sell. 

If renters have to bring their own stuff, they're less likely to bounce because they'd have to move all their own stuff.)Month-to-month-- Principal, interest, taxes and insurance (PITI). -- You'll keep back maybe 5% of all rents for routine maintenance and another 5% for capX (big expenses like roof or furnace replacement).  

I have to move, I lose job, he dies, etc.Who pays taxes and insurance?

I'm glad to hear you've had success, though I think tax liens and tax deeds are different animals.

How was the claims experience if you used this? 

-What is your warranty policy and how do you handle warranty claims?

My hesitation in keeping it is the huge property tax I pay every year about $18k.