IMO, its an additional revenue stream for these cities as landlords have to pay an annual "registration" fee of approximately $200 each year too.

I will say a mom and dad with 8 kids is rare, but 3 kids plus grandma/grandpa and a sibling and her/his husband is very common.Generally more heads in beds means more revenue.

I’m trying to decide between creating one or two bedrooms in the space.The basement comparables I’ve found in the area are mainly one bedrooms so I don’t have a great way to estimate the incremental revenue potential to help weigh against the added renovation cost of the second bedroom. 

Trying to read the actual internal revenue code (which is all published) is like trying to read any laws without training on it. 

Do lenders look at data from AirDnA or other websites that show the possible revenue and profit from short-term leasing certain real estate?  

Relocation will be mandatory and income can range from $100k-$200k+ for smaller revenue generating franchises to the average free standing franchise owner/operator taking in over $600k+ year.The income received from the franchise works more along the lines of a variable income/commission style payout based upon revenue generated per month.

Again, we saw this on the ground in the Airbnb revenues our clients could pull from larger homes in Colorado.

@Dylan Baxter You appear to be going in the right direction as far as the partial exclusion of gain from sale of a primary residence under Internal Revenue Section 121 (pubs are informative but during my tenure with the Internal Revenue Service, I learned that pubs can be superseded by IRS code section language), but a little more information would be needed to comment furtherJim Kennedy

@Gretchen Roberts if they can’t provide you a breakdown of revenue and/or costs based on the different businesses they are operating then there is a chance that there is value add opportunity in management.

The math works out.If you are buying real estate and generating annual revenue, while getting a possible tax deduction on your schedule E after write offs, and based on historical trends your real estate is appreciating at 3%-5% per year.