Nicole Shirvani is a successful psychiatrist and property investor with profitable rental properties in Florida and Virginia. Short-term rentals have brought in six figures for her, but require more work than long-term rentals. Tax benefits of short-term rentals include deductions for operating expenses, mortgage interest, and property taxes.

The short-term rental loophole allows for deducting passive losses against primary income, leading to significant tax savings. To qualify, the average stay must be seven days or less, or 30 days with hotel-like services. Shirvani recommends considering location, personal enjoyment, and local regulations before investing in a short-term rental property.

For those interested in rental income without property management, real estate investment trusts (REITs) offer a liquid alternative. Hospitality REITs focus on hotel, motel, and resort properties. Risk and maintenance costs can impact profits from physical property ownership, making REITs a potentially more attractive investment option.

Read more at Yahoo Finance: This FL doctor profits from tax ‘loophole’ and 6-figure return on short-term rentals. But owning Airbnbs is no vacation