Market AnalysisDemand: Red River Gorge has seen a significant increase in vacation rental demand. 

With owner financing, depending on terms offered, we can increase that number by 10 - 20%.  

Not only would the rent cover your heloc costs (eventually) your property value increases giving you the equity you options for additional real estate investments down the road. 

Right now, we’re seeing a slight increase in inventory and some corrections in rents, which could create opportunities—but achieving solid cash flow on a condo can still be challenging.Getting pre-approved is a great first step to narrow down your options and focus on locations that make sense for your goals.

It's what I pay my overseas VAs with for my business.They did just increase their fees slightly, but it's still the best option IMO.

The instructor gave a case study where we needed to team up as groups of fours and figure out a way to buy an REO property with no money of our own and increase the equity by 30K.

To increase cash flow.

The quicker cash flow may allow you to scale quicker if that is what you want while the better appreciation could increase your net worth more over time.

It's crucial to evaluate how the deal performs with the new mortgage:Updated Financials After Refinancing: Market Value: $459,000 Mortgage Amount (80% LTV): $367,200 Equity: $91,800 Interest Rate: 5% (30-Year Amortization) Assuming after 12months the rate will drop to 5%Monthly Expenses: Mortgage Payment (5% Interest): $1,971 (Now you are paying interest and principals) Property Tax: $260 (assuming has been increased with a 4% from last year) Utilities: $361 Insurance: $104 (+4% Adjustment) Vacancy: $166 (now after 12 months we can assume we have some vacancy at 5% factor on annual rent) Repairs & Maintenance: $166 (now after 12 months we can assume we have repairs at 5% factor on annual rent) Total Monthly Expenses: $3,028Rent Income after 12 months assuming annual rent increase at 5% : $3,323Cash Flow: $295$ per month 😊Long-Term Gains: $5,418 Principal Paydown year 2 (this will increase each as you pay off your mortgage $36,720 Property Appreciation (assuming 8% per year) $3,540 Cash Flow (this will increase as rents rise)Total Annual Return on Investment: $45,678 with just $ $22,789 remaining in the deal.

I think it really depends on if you are able to increase that cap rate with value-adds post acquisition.