Also during the ownership you can increase the value by improving the property and getting your feet wet.

Unless you know Louisville, you don't know of all the great events happening all year round to attract folks from all over. 

Everything else you mentioned, like improvements and Section 179, are basically ways to increase depreciation.

In fact it may even create some more tax return complexity but should not increase nor decrease your tax.LLC are mainly used for liability and asset protection.

I learned something from your comments that I hadn't seriously considered before:  The multi-year lease I think is GREAT for turnkeys AND for a newer investor who has a full-time job and a family to support may not have the time, energy, resources, or knowldedge to start from the ground up on with out-of-state real estate investment, I can totally see how turn-key can be super convenient and VERY attractive. 

@Frank V.I would put down 100k on a value add MF, add-value, refinance it, hold for cash flow and market rent increases, then take the capital and do it over and over!

Make 2 far less attractive to her and more so to you, but then use the last 1 where time is the most valuable.

It will also limit your access to financing and may increase some other administrative chores.Using LLC is an excellent tool for asset protection.

Something to keep in mind with STR, that's tied to why REI is a smart game to play - control is the name of the game.You want to control the guests and rates (vet them in hopes of avoiding property damage, set rates to attract those willing to pay more for quality)You want to control the costs (furnishings, consumables, cleaning/repair/plumbing/electrical)You want to control the property (choice of property, location, financing terms, well or city water, septic or city sewer, etc)This is all going to be very hard to do, if not impossible, if you don't OWN THE PROPERTY. 

I would start with the type of tenant you're looking to attract.