Require Renter’s InsuranceNow, this might seem like overkill for just a room, but renter’s insurance is non-negotiable in my book.

Your friend will have a difficult time with rentals because he's not screening the applicants or enforcing the lease well enough. 

Like Rick said, if the numbers make sense for you then why not?

Yes I have done one cash-out refinance and it worked well.

Doing a deal like this makes sense to myself as an investor if I were to do it with 0% of my own money down and if it was structured and laid out for me.

@Fernando Guzman, You know those properties well. 

(My assumption is it may be tough to prove enough material participation if using someone local to manage.)Two things worth noting:1- I'll be discussing with my CPA in-depth soon, but would like to hear other's experiences on this.2 - The main reasons I'm looking to STR's is the tax benefits (Cost-Seg) & appreciation that comes with buying in these areas opposed to the mid-west where I look for long-term rentals..

To kind of give you a sense of what you are asking, it is like me asking you if Eating Out is a good choice? 

In Denmark, these communities combine private living spaces with shared common areas like kitchen etc., fostering a strong sense of community among residents.

It’s like a community of real people sharing real experiences, which has helped me learn so much.