Unlike long-term rentals, STRs can be treated as non-passive, allowing depreciation deductions, including bonus depreciation (40% in 2025) on eligible assets.For tiny homes, tax classification matters:If mobile, it is considered personal property, allowing 100% depreciation under §179, subject to income limits.

This includes a hotel, winery, mobile home park, parking garage, debt fund, etc.

Investing is different from speculating, in that it’s data driven and therefor predictable and you have factors that play in that covers your downside and strengthen your chance of upside. 

Send a document once and ensure it includes a deadline for their response and a consequence for failing to respond.

Get a signed bill of sale including the furniture at closing for tax depreciation.Communication is key! 

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.

Just ensure to complete necessary due diligence - this can include, but is not limited to, title search, property inspection, appraisal and/or survey. 

Looking for downsides from people that have used it The software that I used, perhaps more advanced three years after your AI development, because we can see the actual Investor Intellegence including more private transaction data and photo.

Your accountant should be able to factor that into your total cost. 

Here are additional comments:1) Buying out of state removes any local knowledge you have from assisting in your success, including knowing areas, people and costs. - We always recommend buying your first rental locally if possible and DIY managing to learn as much as possible before investing OOS.2) Lots of crooks and incompetents in the PMC world:( They both cost you money.- As already stated, you'll have a small portfolio.