Taxes : Taxes have been a brewing crisis nationwide for sometime, Chicago is another prime example of a major municipality struggling under high debt load.

Setting up an LLC may allow for deductible expenses, and investing in municipal bonds could provide tax-free interest.This post does not create a CPA-Client relationship.

I've done a lot of DTS marketing and found that almost all my leads were either tire kickers or if they actually wanted to sell, the property had so many entanglements (multiple family members involved, tons of debt on it, municipal liens, etc.) it wouldn't even be worth it.

"Inflation expectations" is a purely rational and logical way to look at it, but let's consider that bond market buyers/sellers aren't 100% comprised of Vulcans, and that there are highly emotional and irrational individuals among them, as well. 

With interest rates holding steady (so far) and US Treasury yields hovering in the 4-5% range, many investors are weighing the pros and cons of staying in bonds versus seeking opportunities in real estate.

It's very cheap and not difficult to maintain bond/license/insurance.

Check with the municipality where construction is being done to get their take on the development.

Tax-Exempt Bonds: Tribes can issue tax-exempt bonds for certain types of developments, reducing financing costs.Challenges: Projects often need to be structured as joint ventures or leases with the tribe, and compliance with tribal laws and federal rules is critical.

As more people placed more properties in STR inventory, and as more municipalities taxed and regulated the industry, the profitability of the overall industry has reverted to a much more aligned (lower) risk adjusted return.  

Nick Check with municipalities, counties, and HOAs to ensure you are in the clear.