If one were to limit oneself to what the IRS “thinks”, then one’s clients would not fully benefit from what the law actually permits.In the John D.

This will be typically in the 15-20% range (on total construction costs) for new construction, assuming you and the investor are not taking on a cost plus contract.Given your limited experience, I am not sure why you would be involved once you sell the lot. 

It is possible to take on new debt for limited purposes in bankruptcy, though there are more exceptions and potential snags to get into here that will be where your client's attorney comes in.

So, my scope of knowledge is a little bit limited.

This structure give you the ability to have a uniform Liability limit of $1M - $5M over all of your assets.

I started with no money and limited experience, so at that time partnerships were good options for me. 

I too live just west of Fort Worth (technically still in city limits but back up to ranch land).

The other issue is low liquidity from debt providers in ABQ for that asset -- they want really stiff terms, have low lending limits.

According to the article below "borrowers will receive favorable pricing in exchange for limiting rent growth on 80% of the units in the property and keeping them at levels considered workforce housing for the life of the loan."

Probably in the city of Oceanside.My target city currently has no limitations to STR.