As hotels lose market share, these municipalities are losing out on hotel taxes and misc. revenues that are difficult to collect from the small mom and pop STR operators.

However, it turns out that the seller's LLC was unregistered as they had not paid their property tax on time.

Also not clear if property tax is included in your mortgage?

Anthony thanks for taking the time to respond to my post the cash flow issue will not be resolved until my brother who lives at the house is not able to care for himself at that point then I will have a decision to make on this property, my thoughts were can I consider the house a business expense for tax purposes or do I need to consider it as personal property for the taxes.

Texas has been the belle of the MF ball for many years but investors and operators I trust are having questions about Texas - insurance costs property tax costs and weather related issues. 

The rentals are also taxed, of course, but Airbnb and VRBO automatically collect those fees when each stay is booked.

In addition to no state income taxes and pro-business government, the cost of electricity is relatively low.

Coming from L.A. to Vermont, the RE laws and prop taxes suck...

The gains are not realized yet, so you can move the equity without paying taxes on it. 

@Justin Ward To be considered by IRS as a short-term rental and get the tax benefits you must meet the following requirements (defined by Treasury Regulation Sec. 1.469-1T(e)(3)(ii)(A))The average period of customer use is 7 days or lessThe average period of customer use is 30 days or less.