Hi, I had a tenant lined up for our rental property.

Hi,I just started reading some books on real estate investing and wondering about the pros and cons of having a LLC for rental/investment property.

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

IMHO, starting at $150 was way generous, and I'd stick to that number.NOTE:  If they actually couldn't stay in the property, they could claim that against their renter's insurance--that's one of the reasons it's there, and why we require it on every rental.  

The website Businessobserverfl mentions that rental vacancy rates in Cape Coral is 15.3%.

Hi Rabia,I didn't use a home equity loan, but instead chose to use a HELOC to purchase our duplex which is an LTR and our vacation rental on the Big Island.

I have one like this and we furnished it and turned it into a mid term rental.

I do very well with the Airbnb income and do not want to turn it into a long-term rental.

I am particularly interested in purchasing my first investment property as a short-term rental (STR).After analyzing recent data from AirDNA, I have identified several promising areas: Douglas, Saugatuck, Fennville, and I am also exploring opportunities around Stevensville and New Buffalo.I understand that regulations around STRs vary widely, and I've taken the time to study city maps to identify areas where they are still permitted.

How does that compare to keeping it as a long-term rental?