@James YeeIt is the start of tax busy season so it will be hard to call an accountant now and ask them to answer a question unless you are already a client of theirs.The short answer is that you will be required to file a MA resident tax return(as you normally would do) plus potentially filing a NH non-resident tax return.NH is a unique state that it does not tax all types of income.

I have what feels like a unique situation and wanted to throw it out to the group to see if anyone has any thoughts.  

My first deal ever (which I was mainly hands-off on - the only reason I consider it a deal I was involved in is because my ex-business partner used half my money and half his money to buy the trailer) was a rent-to-own house trailer.It was a bit of a unique situation in that the guy who we had moved into the trailer worked for my dad and so we took his monthly payment out of his pay so we knew we'd get our money. 

Have you thought about selling the property -- makes it a headache to walk away from.The best thing to do is talk with a few local property managers -- long term tenants present unique challenges (State & local laws vary). 

I think it is great that areas are requiring PMs to have their own licensing as it is such a unique part of Real Estate.

They hire decorators.

My husband and I are in a unique situation in where the home we live in is owned by my father in law. 

I already have a new CPA and I am working with a financial advisor for our unique situation.

The uniqueness of this transaction is in the fact that the property suffered a fire, and I collected insurance proceeds, but sold the house "as-is" after the fire, putting minimal money into the property from the insurance proceeds.Based on what I have read about taxes on rental homes, I'm nervous that I am going to be looking at a hefty tax bill.

When next I have a vacancy in one of these properties, I may just rent some furniture and pop-in some decor to see what happens.