I slept well at night, even with a portfolio of SF rentals in my name, because I had a $2M umbrella.When done correctly, an LLC adds another layer. 

Contingencies for fourplex properties include inspection, financing, appraisal, rental income, and pest inspection.

Agreed on the in-kind not being the best way to fly, but it was necessary for at least a couple of years - RMD's exceeded rental income and selling wasn't an option. 

Depending on the lender for a DSCR rental property loan, rates will be about 0.125% to .25% lower if you put 25% versus 20% down on an investment property purchase if it's the same borrower credit score and profile being analyzed. 

Here is an article from 2022 - https://www.lakeexpo.com/news/politics/vacation-rentals-in-j...It talks about the judges ruling about certain homes not being STRable.

I would give him a written notice that the smoke is damaging my rental and annoying the neighbors.

You can read up on "Disparate Impact" Theory on a variety of landlord resource websites, including government agencies. 

This is my first rental. 

The short term rental market in our area has been doing really well over the past year and we feel this property is a destination unto itself.

Find a lender who understands your long term real estate goals and understands that rental income can help knock down your DTI to qualify for more loans and acquire more properties.