I learned the hard way that I need the capacity to make the first mortgage payments in the event of default. 2009-10 still stings. 

If you are interested, we have an in-person event coming up this Saturday where we are diving in to AirBnB / Short-term rentals in Chicago. 

@Royce Anies Here is the link to the next meetup scheduled for 12/23https://www.meetup.com/NorCal-Real-Estate-Deal-Maker-Sessions/events/zmgmfryzqbfc/

The other thing...all the loss models are being updated with these events making insurance risk higher which translates into a higher quoted cost...so no surprise to the industry folks. 

But per lot it will cost roughly the following:$1,500 Electrical poles, meter installation $2,000 water taps and connections$5,000 grading and land prep$8,000 septic installation (assuming a 1:1 ratio of homes to 1000 gallon septics)$5,000 down payment on each home ($700-750 / thereafter per unit)$21,500 total set up x 17 = $365,000Ongoing expenses after development would look something this for POH model: $12,750 a month in mobile home mortgages (17 x 750 for PITI on each unit) $1,900 a month in land mortgage PITI (house) $3,000 a month landscaping$2,000 a month in reserve emergency fund$2,200 management$21,850 a month total expenses $262,200‬/yearOngoing incomes after development would look something this for POH model:$27,000/month ($1500 x 18 {17 mobile homes plus house})$324,000/year324k-262,2k = 61,800 net pre-tax profit or $5,150/month.Opportunities to reduce start up expenses: Bulk deals with the government or contractors for doing all the work at once (electrical, water, land grading, septic) Trade free rent for someone to mow and landscape (turning a $3k event into a $650 event every month).

This makes it easier to take the property back in the event that the buyer stops paying since you can now formally foreclose on him. 

If the target client is a healthcare worker who makes 100K+ per year and is staying a few months they will want a certain type of area, whereas a person only staying a weekend wants to be near their "event" and is more forgiving on other things.

I wanted to see how things are in recent events in this regards, as I have no knowledge of this region of the globe. 

Ill be posting the info right after I send this reply, so look for it under Events.

A good loan servicing agreement should address the customary risks, paying obligations such as taxes and insurance, but also have an understanding of just what the servicer will do in the event when non-conventional issues arise.An example would be when a borrower has repairs made to the property (or does them) and they have little equity.