Well done.

If you are not already working with a realtor that is well versed in STR and knows ALL of the requirements for STR, do yourself a favor and reach out to @Josh Green.

This post can be informational:https://www.biggerpockets.com/forums/51/topics/1088325-expla...as well as this discussion:https://www.biggerpockets.com/forums/51/topics/1225072-do-i-...A lot more of similar older threads can be found on this very forum.

This investment should have done very well based on these facts, but the biggest drag on performance was the yearly high "unexpected" property tax expense ($300-500k drag on NI per year).

It's that simple.Doesn't hurt to have real hardwood floors and A/C as well.

.- The inspections are only 5 years, but tenants are not likely to take care of them home as well as you, and refurbishing hardwood, lath and plaster, and anything else is going to be much more expensive than the typical Landlord special (white paint, and grey LVP)It will all come down to making your numbers work.

In light of that did the developers wind up getting a pretty decent deal out of this after they took a big risk on a property with crazy restrictive zoning and no clear path forward prior to purchase?

I'm certainly cognizant of the risks of managing a property remotely (my wife and I did rent out our Chicagoland house for a couple years while living in STL).

Best of luck to both of your daughters as well!

Head over to bank rate or and take a look at the mortgage calculators, plug in the numbers and get an idea of what the property needs to generate to satisfy the intended debt.You still have to underwrite the deal for the non-finance expenses as well(typically 40-50% of the gross rents).