For tax purposes, it's considered a reimbursement for property damage.

The rates on the 4 unit are astronomical even compared to what the current owner is paying (about 190/mo).

If you can hang on into next spring/summer I bet you'll get better rents or be able to sell.How about asking your lender to push a monthly payment to the end of your term for the purpose of fixing the asset?

The area seems to be appreciating by $50k each year looking at previous sale’s and comparing to Redfin/Zillow current values. 

I am about to purchase a property for short term rental purposes.

Let's compare two scenarios I priced out, Borrower Paid Broker CompensationPurchase Price: $500,000SFR 30 Year Fixed Credit 740 DSCR over 1.00 Meets DTI Requirement 1.

I remember when I was comparing tools. 

I guess the purpose for this is to help fund community improvements and maintenance though it's a bit unusual since HOA fees and property taxes typically cover these.

Compare the STR PMC managed numbers to those for LTR PMC managed.- The numbers may have an impact on your decision.You may also want to read your condo's Home Owners Association Master Deed & Bylaws to make sure there are no restrictions on any type of rentals. - Many HOAs have LTR restrictions and some now have implemented STR restrictions.Also, hopefully you've updated the home insurance policy of your current STR rental from a homeowner's policy to a landlord policy.

Cons- depending on your personal financials, qualifying might be more challenging and the loan might not amortize over 30-years.Another alternative would be a business-purpose rehab loan (fix and flip/fix to rent).