The LLC has nothing to do with this because you aren't getting a loan to a new LLC as a new investor with no track record unless you have a long-standing relationship with a local community bank or credit union.It's good that you have boots on the ground in Birmingham, but I can tell from the way you laid it out that you have done research online and made a plan based on this.

If the agreement doesn't define "income" from the guest, I think you have good grounds to discuss this with them to state, "look, the agreement doesn't define this, and it seems reasonable for me to understand that your 18% is not for costs incurred, but only for the income received"--or something to that effect.

@James Walker,I’m active in Chattanooga but don’t do new construction there yet—I’m involved in ground-up in Tuscaloosa and Athens, AL for the time being.In any case, I'd be happy to serve as a resource for your new construction or Chattanooga-related questions!

I need experienced realtors, boots-on-the-ground, and contractors who have worked on fix & flip projects before and know what it takes to get the job done efficiently.If you’re local to Columbus and have the experience, I’d love to connect!

When I graduated in 2018 I really hit the ground running.

I would argue that the MOST IMPORTANT factor for success will be a boots on the ground team that knows the STR market in and out.

I have a 3-unit off market deal.  2 residential units and ground floor commercial. 3,600 total sq. ft. 

As far as tapping into the equity without doing a refinance, we offer some great HELOC products which are especially good for funding short term deals like ground up constructions or fix and flips.  

but I would set your sights a little more in line with reality so you can at least get off the ground..

Just lay the ground rules, stick to them and let the tenant know.