The IRS looks at when the property was first ready and available for rent, not when you closed or started renovations.So even though you put in 500+ hours, the time spent rehabbing, furnishing, and getting it guest-ready (April–July) would be considered startup activity, not participation in an active rental operation.

Some neighborhood have seen issues where STRs are concentrated and not well-managed, while others have a smoother coexistence when clear rules and active enforcement are in place.The challenge seems to be figuring out how to protect residential quality of life while also allowing responsible operators to continue hosting.

Hi @Suhaib Rehman, you might look into leasing it to a small group home operator, nonprofit, or care-related organization, they often sign multi-year leases, handle upkeep, and pay slightly above-market rents for stable housing.

Hey everyone,I’m building out a short-term rental in the [Joshua Tree] market and looking to connect with local cohosts or STR operators who take pride in running top-tier guest experiences — the kind where systems are dialed in, and the property shines every time.I’m not looking for a traditional property management company  — I’m looking for a boots-on-the-ground partner who thinks like an investor and operates like an owner.I’m hoping to find or learn:Anyone here cohosting in the JT area and open to sharing their experience (what works, what doesn’t)?

Great points, Jeff — and you’re right to highlight that the expense ratios are unusually efficient for a coastal STR.A couple of clarifications on the numbers:The current owner self-manages, which keeps cleaning and maintenance costs lower than a third-party STR manager would typically charge.Some of the repairs and CapEx were front-loaded in prior years (new flooring, appliances, and paint), so last year’s P&L reflects more of a stabilized-operations scenario.The utilities figure is accurate — it’s higher due to being master-metered for the property — but the other OPEX categories are slightly understated if you were to underwrite this as a fully managed, third-party operation.If I modeled it using a professional management assumption plus normalized reserves, the operating ratio trends closer to 48–50%, which aligns with what you mentioned for coastal STR multifamily.I appreciate you calling that out — it’s a great reminder of how much variance there can be between owner-operated and institutional-style expense reporting, especially in hybrid STR assets like this.Here's the owner's profit and loss statement for the exacts of the 2024 year.

Because with judgment liens lasting 20+ years and federal court collection powers, you better not miss.Question: Is your estate plan accounting for potential judgment liens, or are you betting the IRS won't be proactive in the final months before CSED expiration?

In these places, STRs are understood, integrated, and regulated in a way that allows hosts to operate predictably.1.

I’m Selma, based in Florida, and I’ve been diving deeper into property management and the tech that makes real estate operations more efficient.

Also his Rat Race 2 Retirement later this month.On Eventbrite you can find Jorge Abreau's Elevate Meetup on the 13th.Both are excellent networking opportunities.Cashflow will depend on your leverage and operating skills. 

Best bet, turn around and sell the property, assuming you bought it 8 years ago and did not continue to refinance up to max value you should have great equity.