While the property is in a smaller town, it’s relatively close to a larger city, which I think adds a lot of potential for attracting both short-term guests and long-term tenants.The motel has fewer than 16 rooms, and the nightly rates are extremely competitive for the area.

Even in 2008 home prices slightly dipped about 16% or so for a short time.  

You're spending over $600k (purchase price + rehab + fees) to make $25k, and then you'll have short term capital gains on that...

Land leases often complicate financing, limiting your buyer pool, especially if lease terms are unfavorable or the remaining lease duration is short.

Interest rate 3.8% In short this is how you do it...Find a flip opportunity, use hard money or what you got to buy, rehab it, re-finance it, boom.  

Also, 18 months is too short a period of time to obtain a truly significant result.  

I took a quick look, @Torianne Baley:1) With short-term treasuries now paying around 4.5%, guaranteed by the USG, why would anyone loan to you at 5%?

And if your investor friend’s private loan helps fill in any gaps, it might be worth considering that short-term pain for long-term stability.What do you think you’d focus on first... paying off that line of credit as fast as possible or jumpstarting the renovation to boost cash flow right away? 

My guess is that's probably around 50% to 100% of the amount of capital initially raised when this deal went out.This scenario is illustrative of the risks of short-term loans. 

Life’s too short.2. you’re making a 5 percent return on total equity now, and surely much more on a return on investment basis.