This is strictly for SFR/2-4 units.

If you go the self-managing route (highly recommended to save 25-40% of gross revenues), below are important points to know about self-managing STRs:Research local regulations to figure out what you need to do to have a legal STRResearch properties near yours on Rabbu or Airbnb to figure out what amenities sell and what you can add to stand outHire a professional photographerImplement a pricing tool like Wheelhouse, Pricelabs, or Beyond Pricing.

Private lenders are not regulated by TRID and therefore do not have to disclose anything to you. 

My question is there anyone in the mesquite area that is aware any rules or regulations against renting room by room ( I haven’t personally seen any).

Normally, under the Tangible Property Regulations, both items will have to be capitalized and depreciated over 27.5 years, not expensed.

@Dan HeuscheleRiverside and San Bernadino counties are friendlier in Landlord protections. tenant protections are strict in LA and OC. 

In general:-Always always always have primary residence first because when selling, first 500k (MFJ) is guaranteed tax-free-To become RE investor you do NOT even need to have rental, your primary is actually the best investment due to regulation above- In a decade, most houses are doubled or tripled in value if you bought at hot area.- When you plan to buy rental, buy rental that's cheaper than your primary- Depreciation is captured from building only on the first tax year so your example almost not possible in real world scenario- The PAL is extremely useful when you have other RE investments, this is what RE pro keeps doing to avoid large tax gains, for example if you have 5 syndication and 1 syndication post a hefty gain, the other 4 syndication PAL is used to offset that gain. 

For example, investors strictly looking for cash flow may not maintain the property at the same level as a long-term buy-and-hold investor hoping for some appreciation.Build a team you can trust. 

I will add an item to this list and believe it should be near the top of the list: what are the current STR regulation and what is the sentiment.  

@MIke Steuart I haven't done a lot in Mass. but my understanding is that if you have an investment property, and it's not owner-occupied, then if you pull a permit whoever pulls it must have the CSL (construction supervisor license).So if it's your investment property, and you don't live there but you want to do the work (or supervise others you hire to do the work) then yes you'd need a CSL to pull that permit - or hire someone who does have it.I haven't done an apples to apples comparison, but my understanding is that generally CA and HI are Democratic places with lots of rules and regulations - like Massachusetts.