My spouse and I are buying a house with cash. This house was a fantastic deal and we ultimately want to tear it down and rebuild into our forever home. But we won't be ready to move in or even start the tear down for ~18 months. In order to help defray property taxes and take bonus depreciation, we are considering renting it out during that interim time. I don't think the house is a great candidate for STR or MTR because it's old and not updated, and it's not near a lot of tourist attractions or hospitals; further, I think it'll cost almost as much to furnish as we'd save in taxes. Our real estate agent who helped buy this house thinks that if we do some minor cosmetic updates and charge just under market rate, it will rent to a family who is relocating to the area and househunting, or even someone who is doing a long remodel, who doesn't care about a super new house and just wants the desirable/convenient neighborhood with good schools. We are willing to put some money into minor cosmetic updates to see if we can rent it out.

We already own an STR in another state and self-manage it. (I don't have a w2 job.) I know that the LTR participation rules are more involved and would require that I qualify for REPS which I don't have to do now. I also know cannot combine my STR and LTR hours, although I am willing to spend the 750 hours working on the LTR in addition to the hours I already work on the STR.

Has anyone done both LTR and STR? Any tips on making sure you work enough hours for each?