Quote from @Alexandra Leiner: Dear community, I am a non US resident from Europe who is looking into investing in the US.

Hey Tes, congratulations on the opportunity to buy/inherit these homes from your parents!

Hey Larry,Totally get where you’re coming from — the whole “California resident investing out of state with an LLC” thing gets messy fast.

@Susanne Stauffer, If you are condominiumizing the back units you are creating new real estate that is distinct from your primary residence. 

Good question, the tax basis here depends on how your sisters were listed on title when your parents added them.If your parents added your sisters as joint owners while still alive, that likely means your sisters owned part of the home during your parents’ lifetime.

@Clinton Springer , Since you have lived in the property for two out of the previous five years as your primary residence, you could take the first $250k ($500k if married) of the gain tax-free.

The need for senior living is obvious and growing.Your 10–20 resident home model really interests me.

So i was thinking why not pay one off first before buying the next rental.Primary residence: 6% APR, zero down VA Loan, hardly any equity, highest debt and mortgage.STR: 5% APR, zero down VA Loan so still not much equity, cash flowing as an Airbnb, second highest loan and mortgage.LTR: 2.9 % APR as a conventional loan, cash flowing, $120,000 of equity locked up, by far lowest balance loan. 

That is where tenant screening comes in for your future residents.

Your CPA is likely concerned about the Personal Use Limitation, which is the biggest threat to the STR tax strategy.If you used the property for personal purposes for the greater of 14 days or 10% of the total days rented during the year, the IRS classifies it as a "residence."