Cash Flow Positive Part 2: Is Your STR Truly Legal with Katie Johnson
How do you know your short-term rental is actually legal, and not one neighbor complaint away from a lawsuit?
In today’s episode of the Cash Flow Positive podcast, Kenny Bedwell is joined by Katie Johnson, a real estate attorney and investor, to break down one of the most misunderstood legal threats in the short-term rental world: deed restrictions. Whether you're operating in Michigan or buying in Texas, these buried clauses in your title documents could override local STR-friendly zoning and put your entire business at risk.
Katie explains the difference between deed restrictions and HOA rules, why “residential use only” language matters, how to spot red flags in your title work, and the limited defenses available if a neighbor sues. They also discuss what title insurance really covers, when to bring in an attorney, and how to protect yourself before closing.
If you've enjoyed this episode of the Cash Flow Positive podcast, be sure to leave a review and subscribe today! Listen now and enjoy!
In This Episode You'll Learn:
- What deed restrictions actually are, and how they differ from zoning laws
- Why a city permit doesn’t protect you from private enforcement
- How to find and interpret deed restrictions in your title work
- What to do if you discover a restriction after closing
- Why Katie always requests title work on day one of due diligence
- How to use contingencies to protect your deal before it’s too late
- Why talking to your neighbors might save your investment
- The real risks of buying in unregulated STR markets
- And much more...
Guest Bio:
Katie Johnson is a real estate attorney, investor, and founder of Katie Johnson, PLC, a Michigan-based law firm specializing in real estate and business law. She’s licensed in Michigan and Illinois, with a pending license in Indiana, and works closely with investors and short-term rental operators on everything from contract review to regulatory strategy. Known for her practical, investor-minded approach, Katie also speaks at conferences across the country and is an advocate for proactive legal planning in real estate. Her goal is to help property owners navigate regulations with confidence and clarity—before it’s too late.
Resources:
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