Hello, I have my property listed for long term rental in Joshua Tree, CA.

Financial goals: Our current jobs provide for high-income but not a lot of time for active real-estate investing, so our strategy is long-term buy-and-hold with less headache properties.

Sharma,Just a few things on the surface the deal looks great in terms of gained equity for the price plus injected costs to renovate/repair.

Are you more interested in short term rentals (thinking about opportunities to co-host STRs)?

Or, if you don’t have a loan on the property, then you make money through cash flow.

This is the ONLY place where the terms PORTION and SPACE are not used in reference to the business or rental usage, but I'm thinking this ultimately has to do with depreciation recapture only and not overall capital gains.Worksheet 3 shows that "Business or Rental Use of Home" is splitting up "Business" and "Home" versions of your gain/loss worksheet, further proving the point. 

I'm doing a loan there now for an investor.

That kind of appreciation is wonderful for long term hold investors but it's having a negative effect on investors entering the market. 

The reasons are obvious - their main purpose is to justify the loan amount and make the lender feel safe.

I'm not having any luck selling it so I'm thinking of pivoting to a midterm and short term rental as a buddy of mine has had some success with his house in Paris Mountain and the 09 zip code in Greenville.