The key highlights of this slate of bills includesAdditional Excise Tax on STRCreation of a statewide STR registryStandardize safety requirements across the stateProtect the ability for local government to zone STR in accordance with their needsThis isn't the first attempt at statewide regulation, and its clear the bills as written would be operationally burdensome to put into place for the state (aka, expensive) and the problems they are trying to solve are not, in all, a result of STR in our communities but of bad tax laws already in existence.

The bar is lower than you might think.

By renting out the additional units, investors can cover their mortgage and expenses while generating passive income.2.

In 2023 we had no major expenses, occupancy was right at 59.7% (218 nights) and we averaged about $175 per night.

As far as expenses for things such as electricity and RE taxes (paid in 2023), those will generally be deductible on Sch E.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.

Quickbooks has gotten expensive and I'm considering just using Stessa and then sharing the reports with my CPA at the end of the year.

I would expect a mild renovation expense about 8k.

Rent minus expenses = Cash Flow. 

Reporting each property separately on Schedule E is generally the correct approach, as it allows you to accurately capture the income and expenses associated with each property.