This is a great strategy for high income earners as they can purchase a short-term rental get a cost segregation and slam a huge loss through to offset current years income. 

Keep separate accounts for real estate income and costs.

The question will be whether the city make you add it or not based on the SOW when you pull a building permit.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

Income: I make ~ $125,000 per year.

The problem is that it makes it more difficult for tenants to pay, and higher-income tenants will push back because of the inconvenience and hassle.

It's the closest city outside California and with the 4th lowest property taxes in the Nation, no state income tax, and landlord friendly NV is a great environment for investing.

Not looking to do this full time, but more of a side and extra income thing. 

Additional streams of income:1) Have mortgage broker present at open house (and charge them "$5000"%) to pre-approve those who want it (but don't make that a requirement to bid).2) Sell the bidder list to other investorsI have not seen any such ads in my area and I'm wondering if it's because this system is not effective or is it because nobody is utilizing it?

And of course other income like salary income can also make up for the negative cash flow as well.