That typically results in a higher payment and an open end mortgage (Credit card) versus cash in the bank that can act as an Asset and PITI reserves where a Heloc cannot.Feel free to reach out if you have any questions, I enjoy helping and talking REI.

My favorite link for the proper order of investments is https://mymoneywizard.com/correct-order-investments/.Jump in.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

I'm looking forward the data analytics page getting built out fully; the beta version shows promise.The fees for credit card payment, using FF affiliate KeyCheck, are higher than most of our guests want to pay.

If you screen your tenants properly, buy the right property and have the right team in place you can be successful.

A lender would have to be a fool to lend on collateral that wasn't protected - if the house is lost in a fire or whatever, the loan is unsecured at that point and is basically credit card debt. 

Probably best to look elsewhere accordingly, as the availability of properly zoned STRs is quite limited.   

I would really drill down on how and why it got to be so expensive, why they didn’t let you know before doing the work, and let them know you would have gone with the $9k bid had they communicated properly, then see if they will negotiate with you.

Do a cash out refinance to offset any credit card or installment loan with a rate above 9% to offset the loss until you have the ability to sell ot or transition into a STR.

It wasn’t until he consulted with a tax advisor specializing in Section 1031 exchanges that he was able to properly navigate the process and save thousands.