The only instance where it might be more beneficial to do it this way vs. getting financing right off the bat is if you need to be SUPER competitive with your offers in your market.

@Mike Gi be sure to check Airbnb longer stays and Furnished Finder to see what your competition's pricing and decor are like and make your properties pet friendly if you can as this is always a way to out compete the competition.

Congratulationswhat you’ve found that both the INVESTMENT side of real estate, and theBUSINESS side are very competitive; therefore profit margins are compressed, so those “home runs” people like to bragg about are actually quite rare.  

It's pricey and competitive, but stay in your own backyard, consistently look for deals, and you'll find a great asset.

San Diego is a competitive RE market with decades of near top of nation appreciation and rent growth.  

Hindsight Critique•Continue to build relationships to increase deal flow•Property manager (Mercer Hughes) is critical to completing renovations and quick tenant placement•Continue to build relationships with private lenders and personal investors•Have cash available to make quick competitive offersDid you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

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.

If that is true I would probably sell and buy in a place where there is less competition.   

Here are a few additional ideas that have worked for me and others in competitive markets like Austin:Off-Market Leads from Contractors: I had a friend who rehabbed a house in North Austin last year.

This will lead to many of the professionals in the same industries who already are not doing that well to fall out of competition and hence be "replaced'.