probably not a property a random out of state investor would want to buy and plan on not spending anything on though, yes? 

Selling resets the game at a more expensive levelIf you sell, the next house you buy will:Cost more than your original oneHave a higher interest rateRequire new renovation capitalNot have an ADU out of the boxYou’d be giving up a known winner to jump into a less predictable future project at a higher price point.4.

I am wanting to buy a single family home in Lexington, KY and VRBO/AirBnB it.  

I get the thinking: it comes from the stock market.

No, MTR guests don't need or expect Le Creuset or All-Clad luxury pots and pans ...... but that shouldn't give hosts license to raid thrift stores to stock their kitchens, either!

No tax so far I think.2) If I convert that partnership interest into shares in a PUBLICLY traded UPREIT I trigger tax on the deemed sale/exchange of the partnership interest into stock of the REIT?

Buy a quality property in a good location, put enough down to make it break even or be okay with a couple hundred negative cash flow.

Personally, I have been revising my "Buy Box" only buying properties build since year 2000, and sell properties built before year 2000.

The key to buying MF is finding assets that are not managed well so you can improve the NOI with some modest effort.

It's a variation of the lease option playbook, where you rent for a year and then give them the option to buy. 2/3s don't buy, so you get to keep the option fee, which you could say is predatory.