Go with the worst case scenario when running numbers/financial modeling unless you know 100% what the figure will be.

We do it using the BRRRLO Model in the outskirts where @Bob Okenwa mentioned.We have a meetup tonight about analyzing numbers and 2 trainings at the end of the month on how to buy these types of properties locally.https://www.biggerpockets.com/...https://www.biggerpockets.com/...https://www.biggerpockets.com/...

I would prevent downside scenarios by running sensitivity analyses on my financial model.

Define your business plan (or goal) and then figure out which models best aligns with that plan. 

Plug into a local investors Meetup or REI and talk to those who are using the same model you are using.  

I currently operate a Scottsdale STR in a non-HOA neighborhood and use a hybrid model of high-income monthly rentals in the winter, 3-night min rentals in the "shoulder" seasons and monthly in the summer when I break even and spend zero time managing the rental.Just be aware of what's happening so you can make decisions that are best for you.

The only thing I disagree with Jon about is there is no additional liability protection with this model because the LLC is not the owner of the property, merely the manager.You don't necessarily have to form an LLC to do this, Kelsey;  you could probably just do a DBA that has both your tax IDs associated with it. 

So, I actually agreed as long the tenant picked out the new model as i didn't want to pay for another toilet if the replacement was also too loud. 

I always used to ask for last 12 months of meeting minutes to get a flavor for discussions + financials to see reserves and budgets.

Entity protection is like a matrix of risk vs cost based on your business model.