STR for Los Angeles - financing

[Jenny Pithie]

We have a SFR with ADU and we are considering doing a MTR in Los Angeles for each unit as we can't do STR on an investment property (that I know of). The property is in a very trendy area of LA and both units should be easy to rent out. We are also considering doing long term as rents are high.

What are the tax benefits to STR vs LTR? I will manage both properties.

We are hoping to cash out refinance in a year or two, does it matter for financing if the property is used as short term vs long term for the income? 

Thanks.