Even longer answer: talk to an experienced accountant about potentially treating your lending as a business and structuring it along the lines of what you suggested.

appreciate all the advice and I'll be following up with some of you to pick your brains as we get more involved in the due diligence and underwriting of potential deals.One thing I should have mentioned is we have a couple of relationships with a few private investors (family, friends, etc.) who have expressed interest in providing the capital if we find a deal that pencils.Thanks for all the feedback so far everyone.

I listend to BP podcast every night.. you guys are great, thank you.If you're evaluating a potential deal, I'd be happy to analyze it using my model.

I'm not cancelling out any other responses here with the one I am presenting, i am just adding a potential.

Tried to do this once and the bank charged me $250 to ask their lawyer about it and refused my request.

I got into this niche due to the low entry cost and the potential for great returns in a short period of time.

. :)Potential Markets:Gulf Shores, ALCorolla, NCRockaway Beach, ORMyrtle Beach, SCCharleston, SCPort Aransas, TXOcean Shores, WA** I assume the California coastline is not cost-effective, I never see it on a list of recommended vacation rental.** We love and have connections to Hilton Head Island, SC but know it is hostile to STRs.** Slight bias against Florida due to anticipated stress and anxiety of watching a hurricane hit your vacation home annually, ha.

@Brian Hunsaker sure a paid off property netting you ~$10k annually, or ~$15k before depreciation, sounds fine.The potentially "silly" way to reduce your taxes is to leverage out your properties. 

@Ayyoub Reza   There are a number of places to get agreements but make sure you get one that is current and state specific (here, legal zoom, a lawyer, real estate association ) Read your HOA bylaws what does it require to be included.

You can always reach out to me anytime and I can send you a comp report on any potential properties you are evaluating.Happy investing!