However, consider STR seasonality, local regulations, and management demands, and ensure your equity loan and new primary residence costs fit comfortably within your budget.

You'll also want to set up criteria for residents.

You said you can't sell now, but want to wait for the equity gain.

One more thing I should address:  Installing cameras inside of a residence with other tenants can be a HUGE legal violation.  

Instant equity and upside How did you find this deal and how did you negotiate it?

Together, the property nets us roughly $1,400/month after expenses.Equity Split: My partner owns 60%, and I own 40%.I'm exploring ways to take out my equity without disrupting this deal, as I feel this isn't the best financial decision for me right now.

Quote from @Victor Yang:In addition, is it possible for me and my wife to gift 36k worth of equity per year of the house (under the annual exclusion limit) and therefore have none of the costs go towards the lifetime gift limit?

Two views of ownership; owning the equity,  owning the debt. 

If you're most people a balance between cashflow and equity is really what people want.

Since the original loan was apparently for a primary residence an LLC could never qualify because it isn't a person who would owner occupy the property. 2.