I have a builder friend who tore down two houses and put up 3 townhomes on those two lots.  

But it's difficult for me to just hand over money to someone I've never met, when I have so many friends (and have read so many stories here) who have been ripped off by contractors.How can I protect myself?

Rent to close friends and family and on AirBnb to cover my expensesOther than that I think finding a LTR furnished at that price point will be very challenging

I'm hoping to see if this is a good deal and if someone can help guide me.My friend already has a property that's cash flowing in Kansas City, MO.

It’s more like having a continuous, flexible funding option rather than a one-time transaction.It doesn’t require much effort compared to getting a loan traditionally:When you "get a loan," you typically have to go through banks or rely on friends and family.

Many investors who are in a similar position in my market (another HCOL/tenant friendly area) choose 1 of 3 options.1.

A legend in my own mind, my friend!

LTR is stable, slow, and risk is low but potentially not as much cash (right away).Comes down to what goals you have and your risk threshhold - I have friends in CO springs who do STR and MTR, and works out great - but also have folks who LTR in that area and it pays for them self and it a great way to save money in places like taxes and build equity.  

VinayI do not work in that area, but I have investor friends who do.  

Back when a close friend of mine; he’s a commercial landlord in Phoenix who once took on a quircky triplex in a tough neighborhood..decided to reshuffle his insurance setup, I saw firsthand how getting stuck in a clunky policy can really stall your forward momentum.