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. 

The reason you would want an LLC is that you would be able to define the level of investment each party is committing to prior to partnering, explaining the responsibilities of each party involved, what should happen if there is a breach of contract, how funds are handled and more.

This should define that not moving in will not return the deposit.

Assuming we are defining pre-foreclosure the same at least.

@Allan Smith I'm trying to define the tenant-landlord relationship I want, and therefore the informal and formal policies.

The law here in Illinois is due to be re-written in the coming year, and I'll for sure be pushing for ownership to be well-defined as holding title and not some silly equitable interest argument.