The last and more important item, look at the bylaws, rules and regulations; can you re-rent, do they have an approval process and do they charge a fee.

The LA City Council proposes rules, which have yet to be signed by the mayor, to restrict and regulate AirBnB type short term rentals throughout the entire city.

In addition to a properly developed operating agreement, some custodians require a) an attorney opinion letter basically stating that in the attorney's view the LLC will conform to IRS tax code for SDIRAs, and/or b) a manager's acknowledgement letter basically stating that the LLC manager (you) will operate the LLC in conformance with these IRS regulations.

@Kenneth Garrett I think it is good to have a detailed plan but if you are sending that out to prospective investors, you may be infringing on SEC regulations.

Especially read the condominium rules and regulations.

I would not have made it through the GFC with them going to bat for me with the regulators.. and giving me term outs on loans that were due ( you know 5 year call loans so many have these days again but not me).. other investors got hammered when big banks did exactly what you said loans were due they called them. 

So to me there should be rules and regulations that keep naive and uninformed people from losing large sums of money. 

And there are so many rules and regulations (bleh)Find a more STR Friendly market 

Under Treasury Regulations Section 1.266-1(b)(1), only expenses that would otherwise be tax deductible may be capitalized using the election."

Given that this is expensive and renters don't exactly care about this, would you recommend I do two duplexes rather than a quadplex, meeting the fire safety regulations?