Thank you for sharing your experience here; it’s a good reminder to be extra careful when dealing with properties like this.This post has definitely made me realize how important it is to double-check zoning and property classifications before closing on a deal.

@Jackson Harris would absolutely love to get in on a call I don't live in Phoenix at the time I'm in California but I'm going there in the near future.

Quote from @Andrew Lawlor: I've been actively investing in short-term rental properties for the past three years, managing one live property and another that will go live in two months.

Personally, I bought a 3 bed single family home soon after starting my job and had two friends from college rent which covered my mortgage plus a little extra.

For some extra context, their lease expires in about 5 months, so this landlord transition happened midway through their leases. 

I live in California but am looking to invest in Texas, Alabama.  

Also, keep in mind that an IN multi member LLC would require a separate tax return, so you would want to budget for extra admin fees.

.- The townhouse you're moving into is currently a rental, but you plan to live there two years for the 121 exclusion.

Not to say you cannot do well, but it’ll take some extra TLC. 

You can't rent out a PO box and live there.And yea that sounds like a huge red flag to me.