At the end of the day, it's hard to believe that they couldn't get an exception being within $2k of their minimum door value as long as compensating factors were present (strong DSCR, strong FICO, experience, etc).  

So, the gist of the argument as to why arbitrage for STR is a bad strategy is1- You build no long term real property equity2- Your exit strategies are limited3- If your model is very successful the landlord may not renew your lease and work the model himself, thereby piggybacking on the work you did to make the property successful with no compensation to you4- Local laws and ordinances may be tougher on STR where the operator does not own the property5- Should you not be able to use the STR strategy due to either governmental regs or market demand, you will be stuck with a fixed cost and possibly no way to generate revenue to offset the lease paymentsis that correct?

More likely than not, they will want compensation because that's human nature when you take their things.

I mean at this point it might be easier to just give him his share of the RECOGNIZED GAIN (those words are critical).Yeah honestly you don't need paperwork to create a partnership at any level, for better or worse - substance over form.On top of that you violated 721 and made it a taxable transfer.1.61-2(d) Compensation paid other than in cash—(1) In general.

It makes it a lot harder to get compensated for damages to the home. 

Pre-approval from the state is required to sit for the examination.Please note that the Georgia Business and Law exam is also required to be passed to obtain your contractor’s license.Licensure will be required for the practice of contracting in Georgia for any job over $2,500.Applicants must have a minimum of net worth of $150,000, a Line of Credit with a minimum of $50,000 one must have a CPA submit a reference letter/form attesting to either a review or audit.Must provide copy of an insurance certificate showing proof of workers compensation insurance as required by Georgia law and liability insurance in a minimum amount of $500,000.

This will ensure you will be compensated for the months it went vacant. 

Tenants who are habitually late pay late fees which compensates me for the hassle and for the lateness.

The renter will have compensation for the cleaning built into the lease, and her staying there will be conditional upon performing the cleaning.

Memphis Investment Properties Turnkey Case StudyDisclaimer: I am an investor/customer of M.I.P, I do not work for them nor being compensated in anyway, just sharing my experiences with other investors.Providers Involved:Norada Real Estate InvestmentsMemphis Investment Properties (M.I.P)Reedy and Company Realtor, LLC – Real Estate Broker and Property Management for M.I.PBemortgage – LenderLipscomb – InsuranceThe Prep: I originally came across M.I.P through Norada (Marco Santarelli, BP contributor and has his own podcast).I was assigned an advisor who gathered my goals and situation and we worked together to identify two markets to look at Memphis TN, and Birmingham, AL.I’m am an out of state investor living in Colorado and have two other properties in Texas (not turnkey) and have been a BP member for some time.I attended an investor Tour in May in Memphis to check out the area.