This means that you model the income and expenses for each.The reality is that those are two very different income models, long term rental is a passive income investment (per IRS, not reality), STR is a business.If you are conservative, you want the STR to be able to function as an LTR in the event that sufficient bookings don't happen or local regulation makes operating the STR untenable.When you buy an STR you should be looking at very different criteria than if you are buying an LTR.

It's strange that you've had little interest in the portfolio of properties...unless they're not producing income or improperly priced based on location, condition, etc.

For example, in Tulum, we now find ourselves in an oversupply situation, which is going to get much worse so I wouldn't surprised to see prices going down in coming years.In Baja California Sur, price appreciation was actually well above 10% during and right after the pandemic but it has returned to normal levels now.2.

Best practice is to have equity that you can sell if this happens or you are positive your W-2 income, good credit and equity position will allow you to refinance fast to another lender in the future if this happens.

Investing in passive income and venturing to other business ventures.

One element you must incorporate into your search is income predictability. 

Advice on retirement with rentalsOk, this could be kind of long...I'm trying to scale back a bit and simplify my life.

Hi Kostyas, I am in a similar situation as you but have avoided the substantial presence test so far.May I ask how your foreign income is treated in the US?

The no state income tax was a big draw.

I can see that this will do well in similar locations where rents are highest and people are looking for additional income.