granted I've only been doing this since 2021, but things are certainly picking up in our market as far as buyer activity in the past 2 weeks or so in a significant way that I know the data won't show yet but that you can feel.

You’re definitely looking in the right direction, but there are a few tripwires to be aware of.For the STR strategy to work this year, the property has to (1) be placed in service in 2025 (furnished, available and actually listed for rent), (2) qualify as a short-term rental for tax purposes (average stay under 7 days, or under 30 with substantial services), and (3) meet one of the material participation tests (for most W-2 folks that’s usually 100+ hours and no one else, including cleaners/PM, doing more than you). 

REP status is based on two tests.

Since you’re looking out of state, focus on neighborhoods with stable rental demand, check crime and school data, and make sure you understand renovation costs for older Midwest housing stock.

Given your mix, I’d keep the 2.9% LTR leveraged and redirect extra cash to build 6–12 months of reserves across all properties, then attack the highest-rate, highest-payment risk next, which is usually the primary; the STR stays if it’s reliably cash flowing after reserves and stress tests.

A good tip is to do a thorough sniff test in each room after removing carpets and baseboards, and consider using an ozone machine or professional odor inspection if you want added certainty before investing in major drywall work.

I think most of them pull loan data.

A licensed, FCRA-compliant screening agency can handle this for you and give you clean, decision-ready data.Here is what most seasoned housing providers lean on today, instead of DIY document review:• Direct-source income verification that pulls income data straight from the applicant’s benefit portal or financial account, which stops altered documents at the door.

What data was this figure calculated by, exactly? 

Doing so gives them more time to meet the short-term rental material participation requirements — and helps avoid the risk of taking bonus depreciation with a cost seg study only to have all that depreciation become a suspended loss if the tests aren’t met.