2) Would this be legally defined as a loan, and so be subject to laws regulating loans, such as maximum allowed effective annual interest rate?

Hey Joyce,Depends on what you define as "most efficient."

@Brooke Contreras start by clearly defining what your objectives and goals are which will then lead you to the best strategy and market.

@Bobby Shell since you didn't say MIP, I'm assuming you guys bought through a conventional loan...that said, an appraisal may help or hurt your case...firstly, you may spend $600 or so per appraisal, and if they come back at a more conservative value then you think, you have just locked your value and defined your equity position...most lenders will ask for the properties value to get a quick rundown of your equity as they start the pre-approval process to calculate DTI...it depends on your lender, but outside of a refinance, I've not heard of a lender requiring an appraisal just to apply for a new investment property loan.

The Fannie Mae underwriting guidelines define a self-employed person as follows:Any individual who has a 25% or greater ownership interest in a business is considered to be self-employed.

Municipalities should be legislating to get them out of residential communities but in turn should define areas where they will be allowed.STRs is a new approach to hotel accommodations that may or may not survive but for those effected they can simply turn them into long term rentals if they wish to stay in business.

The operating agreement further defines the protection of there interest.  

Two takeaways:1)  Define your ideal client base first.

I do not use more sophisticated analysis such as IRR because I don't have a defined hold period.Back to Denver. 

@Eli Mills this would be the monthly payment to the investor for the defined period of the loan.