I know you mentioned leaving a little more money in the deal than expected, but with $500 in cash flow and a $1,200 rent, it looks like you're still in a great spot.It’s also impressive how you managed to find the right contractor, especially on your first out-of-town project, those connections can make or break a deal, so kudos for finding one who’s an investor too!

There has been multiple break-in's at the property, some of which have been burglaries and some have been squatters. 

Websites like BiggerPockets have forums where investors break down deals step by step.

However if you do plan on refinancing again in the next 3-5 years, buying down the rate won't make any sense if it's going to take at least 3 years to break even.

Break-even cash flow?

Hey, that's a great question and definitely a smart one to ask when you're diving into the details of STR (short-term rental) investments.Let me break this down from both a tax and practical standpoint based on what I’ve seen with clients in similar situations.

Likewise, a low value post, that doesn't technically break any of these ever changing rules, is still a low value post with out without whatever crosses the most recent line of self promotion.The incentive to provide value will take care of itself.

However, when you factor in the HELOC, we have a negative / break-even cash flow (HELOC payments are about 25% of the revenue from both).

So that first year may be a 2 to 3k loss or break even unless he gets lucky. 

I think they were worried about breaking the lease or a new owner immediately canceling the lease.