Anyone selling it to someone without permissible use is violating the terms of their agreement with the furnisher at the very least and potentially violating state and federal laws.Even if you have legal access to the data, what you do with that data you obtained legally, is highly regulated.

The reason they gained a bad rep is that seller's would specifically target tenants which they knew would most likely not be able to qualify later any way at which point the seller would keep the option money and redo the whole process, never really having to sell because the buyer could never really qualify for the home when the time came to exercise the option regardless.With that said, laws and regulations have tighten to address this issue in your favor.

If you own the property, you can regulate the behavior.

For example, we have a CA forum and inside that, the Los Angeles forum for local discussions.As to the question, I am not from MD so my input may not be viable but in dealing with these issues across the country, most states have rules and regulations now that specifically disallow a party to lock up a contract with a seller, market that contract which always includes the specifics of the property (otherwise how would the potential buyers know what they are buying) and then "market" that contract and property via Craig's list, emails, their websites, this website, etc which is "publicly marketing" to find a buyer.

They are better purchased from a financial advisor that is regulated by the securities industry who educates their client not only on the risks of a DST but also ensures it is a suitable investment in terms of distributions, investment goals and tax strategy.

Also assuming your investor meets the requirements for deferral of gain, as well as all the other myriad of requirements under IRC 1400Z and the Regulations thereunder.

Just as I posted, IRS released this revised doc on the 199A Final Regulations.

You could also use grouping if the rental activity is “insubstantial” (a term undefined by the regulations) in relation to the business activity.You can offset the income only if you materially participate, and need to be careful of the self-rental rule under the IRS code 469.

@John Paul WhaleyYou can recession proof by always ensuring you are buying with a strict rule of cash flow and not over leveraging your properties.Generally in a recession rents will rise due to demand for renting options vs. buying.

Some things like pots and pans just need to replaced every year from the use.Biggest thing would be if regulations changed in your area and STR's were prohibited.I have not had any significant issues with damage to my Vrbo.