The biggest risks are the tenant not paying and then now with the government shutdown, the government potentially paying late.as someone else said, I'd recommend house hacking.

Which ever city you go with I'd recommend looking into a local landlord association as they tend to have insider knowledge of all the rules and regulations.

I know it has been in the past, but how is it / will it being / be impacted by government cutbacks?

You can't sign up with NFIP Flood Insurance right now anyways due to the government shut down.

One - from the Investment company act for the overall fund structure. 3(c)(5) is an exemption from the investment company act for real estate funds.Two - from the securities act for the investments within that fund structure. 506(b) and 506(c) are exemptions under the securities act, which allow different methods for marketing the funds/syndications.More detailed breakdown:🔹 3(c)(5) — The Real Estate Fund ExemptionThis is part of Regulation D under the Investment Company Act of 1940.

Margins are thinner now than they were a few years ago, especially with insurance and cleaning costs up, but a strong product still wins.On the Florida coast, you get more variety — think smaller beach towns like New Smyrna, Cape Coral, or Anna Maria Island — less saturation but also more local regulation.

Week of October 20, 2025Even with the government shutdown delaying some reports, this week’s inflation and housing data brought some encouraging news!

Some of the listings on AirBNB, VRBO or similar could be using the 30 night minimum to be considered a MTR allowing you to bypass some of the STR regulations.

Assuming the government reopens this week, we'll get October CPI and jobless claims data this Thursday, and PPI, retail sales, and business inventories Friday.

You should have some good economic reason for converting it.There is no court case or regulations specifically prohibiting this, nor telling taxpayers they can do this, from my experience, but again, you asking this question and it feeling a little "too good to be true" is usually a sign the IRS may scrutinize something like this, especially if done repeatedly.