I say, that is a great deal for a second.Now, in this real example, the purchase price of $415k and rehab of $16k (that seems terribly low, so red flag for me on this portion), places this at an all-in deal (acquisition plus rehab) of 75%.

Alas, here is the correct answers in bold below with proof:I recently bought and moved into a quadplex 4 months ago.

There are lots of red flags here. 

Does anyone here have a STR in red river gorge?

So it started raising questions.It sounds too good to be true and red flags everywhere! 

The market where I am is also red hot.

If you are even willing to be bold in the right area, you might also be able to rent your room and live in the laundry, or an office, or the garage, or a trailer in the drive, something like that.As far as structural issues we do have foundation issues in many parts of the city. 

So we would be in the red for a while.

I have been red-carded before for nothing.

Well you will see my responses in bold that show the facts vs some guy sitting on the internet thinking he/she knows what they are talking about.