However, ultimately I decided to go against this as it may set a precedent for them to continue to ask for more and more modifications. 

The collection should follow them for a number of years and any pm or owner pulling a credit report should catch this. 

Once you decide to start branching out your business, I bet I will be able to help!

Just wanted to hear out other STR owner's experiences with navigating these ordiances.

Are you doing owner occupied loans only?

If I were to rehab it, could I refinance with a conventional owner occupied mortgage at the ARV in order to pull out my original capital?

I proposed a couple owner financed terms to them and they returned with this one:Sale Price: $300,000 $25,000 Down. 3% interest. 5 year balloon. ($244K ish) This is obviously far better than any bank can give me with interests rates around 7.5% here non owner occupied.

So look around, interview other STR owners so that you have sufficient information.

Whatever you decide to go with, if you go cheap just prepare yourself that you'll probably never touch it up well unless you have a leftover can.

I go to look at a property Thursday with a contractor to do my own due diligence, the property the owner wants 45k with an ARV OF 90k-120k.