The lease should state that you pay the water and sewer and bill it back based on the actual usage. 4. 

Any red flags with allocating FF&E into the purchase price vs separating it?

Because the property will face more usage, a good tenant operating effectively is very important.One other pointer: Since you’re putting money into this 5+ bedroom property and it is being used for business purposes, you might consider looking into cost segregation studies.

@James E. 

Knows Mariana and cigarettes versus candles, fireplace, etc.

Don’t Mess This Part UpQuick STR question I see trip people up all the time:Your rental averages 7 days or lessYou materially participatedSo yes — you likely qualify for the short-term rental “loophole.”Great.But then comes the part many investors get wrong Do you report the income on Schedule C or Schedule E?

In those cases, it makes sense for the landlord to pay them directly and either bake the cost into the rent or bill the tenant back for a utility based on usage.

All the expenses have a column to separate them into schedule E amounts.Lastly there is a tax recap pages pulling the totals for  schedule E number into one sheet for my accountant.A second spreadsheet track all my repairs and replacements in the rentals (Just Item and date).

If you're looking to scale in the short-term, you'll need to be effective with your usage of cash.Ultimately, you should base the majority of your decision on a cash flow analysis, comparing both scenarios (in addition to your short-term goals).Another very important aspect, is the current condition of the property and if there is any deferred maintenance.

OPERATIONAL EXPENSES$1,040Monthly Upkeep & Local LaborUtilities (Elec/Water/Sewer)$350Includes high A/C usage and pool pump power.Pool Service$150Professional cleaning and chemical balancing.Lawn & Irrigation$130Mowing, edging, and sprinkler head repairs.Pest & Termite Bond$85Subterranean bond + quarterly pest spray.General Maintenance$325"1% Rule": filters, paint, and pressure washing.III.