Pros - Good ROI for certain properties. Buy the right ones and you make some good coin.

Cons - Many HOAs are taking a stand against short term rentals. One change to the DCCRs and you are out of business. We just voted to eliminate short term rentals (except sale, leaseback) in our neighborhood after the lone VRBO in our subdivision drew some unwanted attention. Some cities and municipalities are also adding restrictions and regulations on short term rentals. DYODD on pending legislation before making any big financial commitments.

Converting huge McMansions into assisted living facilities was a hot niche a few months ago too. Buy a big old house, hire a nurse and cook for daily visits and charge premium rents. I'm glad I dodged that bullet...