I can say in Detroit the wholesaler your talking to has most likely found that deal from 2-3 other wholesalers, they literally have to payout 2 - 3 other parties to get the deal and this is what the fees are high and the deal makes no sense.

I would highly recommend talking to Jeff Weller at Coast 2 Coast and Fernando Corona both are also PadSplit hosts but we're some of the first expert lenders .

Here's the problem: They are not a sustainable asset for most to own; they are difficult and costly assets to exit through a sale; if you achieve favorable refinances, you may be able to use those funds to buy other (hopefully better assets) but are now faced with operating highly leveraged bad assets. 

I highly recommend them.  

If you decide to use them as managers who take a % of nightly rates, I HIGHLY recommend asking them about ALL fees that they charge - including the fees that "Guests pay". 

Its money well spent land development is high risk high reward.. depending on Jurisdiction. 

I'm in New York but the prices (at least downstate) are much too high for me to make my first deal so looking more upstate and out of state. 

Keep in mind that this comes with high turnover, and (often) students who will beat the hell out of the property!

@Denise Lang Starting your real estate investing journey out of state can be strategic given California's high costs and tenant-friendly laws.

Use caution when borrowing against your stock portfolio, especially if it's a high volatility portfolio comprised of individual companies.