The property is actually in my mother in law's name but we have been paying the taxes, insurance, repairs, etc., as well as collecting the rent.

But you will have other expenses too: insurance, property taxes, maybe some of the utilities or HOA fees (I am assuming you are paying cash - if not, then a mortgage payment may eat up a lot of your profit).

People have been known to kill other people for petty life insurance policies. 

For example, if, in an 18 hour waking period, you spend 2 hours snooping through the AirBNB, writing down the makes and models of appliances, figuring out the distribution of the mini shampoos and inventorying how many cooking supplies your hosts are providing and the thread count of the sheets, then an auditor might allow you to take 10% of your total trip expenses as a deduction.If, however, in an 18 hour waking period, you spend 6-8 hours per day interviewing Hosts, researching which properties would make good AirBNBs, researching the local laws, touring properties, meeting with an agent and vigorously pursuing your next acquisition, you'd have a MUCH better case for writing off your travel expenses (but probably not your lift tickets and equipment rental).If, on the other hand, you are traveling and on vacation and just hang out in your AirBNB without actually performing any activities, then the odds that an auditor will allow any deduction at all is pretty minimal.In any audit, it would be up to you to document the business purpose of your trip.  

IRS approved documents, document maintenance, an established history and good reputation, and experienced support are very important factors in my opinion.

I'm good at self study and have done licensing exams like this before; I used to work in finance and insurance so I'm not totally new to the whole licensing exam idea.

Only recommendation there is to carry umbrella insurance, which you should have regardless.Your banker is correct on all accounts

 - Rent: $1550 per month- Vacancy: 5% -Capex 6.5%-Repairs 3%- Water and Sewer and electric and trash and HOA: $0- Insurance: $90 a month- Property management: $155 per month- Property tax: $375 a monthThis leaves me at $166 cash flow per month , $1992 per year.

Thank you- can you point me to some documentation?

Hi Everybody,I am trying to find the best umbrella policy and want to ask if anyone knows of a great company in Indiana that does stand alone umbrella policies. I know they can be hard to come by. Best,Patrick