Here’s the breakdown:Financing & Investment Details: Total Project Cost: $750,000 Purchase Price: $450,000 Rehab Cost: $300,000 Total Investment Needed: $750,000 Private Money Loan: $550,000 (1-year term at 9% interest) My Cash Investment: $200,000 Interest for Private Money Loan: $49,500 Closing Costs for Private Money Loan: $0 Closing Costs for Refinance: $27,000Total Cash in the deal:$750,000 + $49,500 + $27000 = $826,500Exit & Refinancing: ARV: $900,000 After renovation, I refinance at a new loan of ~$675,000.

In terms of material participation for cost seg I'm good there and meet the requirements. 

The longer term loans would have lowered your monthly payments and decreased the costs.As for rent, each year you need to look at rents in the area to decide how much you will be increasing the rent by. 

You will never get that back in terms of additional cash flow

The key is vetting your lender properly—asking the right questions, understanding the terms, and ensuring the numbers make sense for your strategy. 

And I think it should be pointed out that number of federal layoffs in percentage terms compared to the total employed is still quite low.  

Do you happen to have long term % of gross rent of combined maintenance/repairs/turnover costs/CapEx  ?   

@Tiffani HollisFor a long-term rental, I’d avoid used dishwashers entirely—repair costs and reliability issues often outweigh the savings.

Rent would probably be a short term nightly basis. 

For instance, the term could be 3 years and add a clause that says they have to return the property to the condition it was in when they moved in, not just keep their deposit.