Otherwise, Incline Village & Crystal Bay are one of the easier places to purchase and run a short-term rental.EAST SHORE, NEVADA - DOUGLAS COUNTYThere is a 600-permit cap, as well as a limit on density (the total percentage of STRs that may be permitted) per neighborhood area.

Depending on your age, that may be a small amount at the beginning, but it gets to be a bigger percentage of each account as you get older and your life expectancy gets shorter (according to the IRS table). 

With short term rentals I would think it would be less of a percentage, given STR income should be higher than LTR income.  

Hey Stacy,In the scenario where Cousin B buys 50% of Cousin A's primary residence as tenants in common, rental income and expenses typically follow each owner's ownership percentage.

Is there an assumed percentage already embedded there for property management, CapEx and repairs?

However, you may be able to offset some gains through depreciation recapture.Prorating the exclusion: The IRS typically allows you to prorate the capital gains exclusion based on the percentage of the property used as your primary residence.

Because they run on percentages instead of being paid by the hour?

Here’s a detailed breakdown of these two types of markets and the factors that contribute to each:Cash Flow Market, a cash flow market is one where rental income exceeds the expenses of owning the property (mortgage, taxes, insurance, maintenance, and property management), resulting in positive monthly cash flow for the investor.Key Characteristics:High Rental Yields: Properties typically have high rental yields compared to their purchase prices.Stable or Slow Appreciation: Property values increase slowly over time, if at all.Lower Property Prices: Generally, property prices are lower, making it easier to achieve positive cash flow.Higher Rental Demand: Strong demand for rentals due to economic factors, demographics, or local employment conditions.Factors Contributing to Cash Flow Markets:Economic Stability: Stable job markets and steady local economies that support rental demand.Rental Market: High percentage of renters compared to homeowners.Affordability: Affordable property prices relative to rental income.Local Policies: Landlord-friendly laws and regulations.Appreciation Market, an appreciation market is one where property values increase significantly over time, offering substantial capital gains upon sale, but rental yields may be lower, resulting in lower monthly cash flow.Key Characteristics:High Property Value Growth: Significant annual increases in property values.Lower Rental Yields: Rental income may not cover the monthly expenses, leading to lower or even negative cash flow.Higher Property Prices: Generally higher property prices, which can make it harder to achieve positive cash flow.Strong Economic Growth: Rapid economic growth, population influx, and development.Factors Contributing to Appreciation Markets:Economic Boom: Strong local economy with job growth and high-paying industries.Population Growth: Influx of people moving to the area, increasing demand for housing.Infrastructure Development: Significant investments in infrastructure, amenities, and services.Desirability: High quality of life, good schools, and attractive neighborhoods.I hope this information finds you well. 

What rate percentage drop would justify executing a refinance to lock in a lower interest rate in your professional opinion?

An assumed mortgage that is 2-3-4 years into the payment schedule, has the additional incentive of a greater percentage of their initial payments paying down a greater principal portion.