You need to think about your investment in terms of ROI (Return on investment).  

Hi All-I want to research short-term rental (STR) opportunities in Snoqualmie Pass here just outside of Seattle. 

It rents well and the regulations are friendly. the only problem is, most of the townhomes have CC&Rs which prohibit short term rentals. 

I'm having a weird feeling due to the ease, the really good terms and the fact they aren't putting liens on the properties.

As to what this means in terms of equity split, reasonable minds can differ. 

However, in my opinion in the long term, the extra fees end up costing the owner more and just leads to a more strained relationship over time. 

Conversely, rental property activities reported on Schedule E of your 1040 tax return do not present the same way.Third, all rental activities, including short-term rental (STR) activities, within a partnership tax return are reported on Form 8825.

Brendan,In banking terms you might be "Risked out" meaning too many mortgages which equal "Excessive Tradelines" and those two things equal high risk.

It seems like a great deal in the long term, but will be very difficult/expensive to make it cash flow for the first couple of years.  

Not sure how close you are in terms of proximity to the university but my Dad bought property near a university for over 30 years and eventually a developer came in and bought everyone out and added luxury student housing and shopping with a huge payday for all the owners who had bought many years before.