My brother and I, both out-of-state investors, recently acquired a long-term rental property in the Boerne area (near Leon Springs).

Evaluate their term.

Hi Charles, I think you made the best decision in terms of an exit strategy. 

Have a conversation with your property management company well in advance of any transition to ensure you are fully aware of all terms and conditions.

The principal sum, plus all accrued interest, as defined above, shall be paid to the Holder upon as set forth herein.Payment & Due Date: The Maker shall not be obligated to make any payments ofprinciple during the term of this loan until January 4, 2024 ('Due Date"), at which time the entire principal balance, plus all accrued and unpaid interest, and other charges, if any, shall be immediately due and payable in a lump sum balloon payment to Holder.Collateral: This Promissory Note shall be secured by a mortgage lien against thefollowing real property: Address listed; (the "Property"), executed by Maker for the benefit of Holder.Assignment: This note is NOT assignable by Maker without the written consentof the Holder, which shall not be unreasonably withheld.Default: The occurrence of any of the following shall constitute an "Event ofDefault':Failure to make any payment due hereunder;Nonpayment of principal upon the Due Date;The breach or failure to perform any of the terms, provisions, conditions,promises or agreements in the Note, that is not cured within five (5) days ofthe date of written notice from Holder;Any representation or warranty made or deemed made by or on behalf ofMaker to Holder under or in connection with this Note shall be materiallyfalse on the date as of which made;

Hey Brian, Most DSCR lenders will underwrite based on Long-Term and Short-term Rents.

I just want to make sure that I don't end up paying taxes on it like I would if it was a long term property and I sell it without a loan to repay, therefore, it looks like all profits to IRS. 

Both laws use the same terms, but define them in completely different ways.I find it best to reference HUD's guidance memos on the subject.https://www.hud.gov/sites/dfiles/PA/documents/AsstAnimalsGui...https://www.hud.gov/sites/dfiles/PA/documents/HUDAsstAnimalN...https://www.hud.gov/sites/dfiles/FHEO/documents/19ServiceAni...

Purchase price: $375,000 Cash invested: $87,000 Short-term rental in Hocking-hills, Ohio What made you interested in investing in this type of deal?

I have 8 properties and 31 doors a W-2 and several other investments and my long term accountant charged me $1600 this past year.