This could be a huge opportunity for investors who can find cheap conversions (think: a SF with an existing in law apartment).

The house had a warranty the first year that covered anything that came up, and we only had one issue with HVAC over those 3 years. 

Cash-flow is for "keeping the lights on" as in covering operational expenses to defend against any need for additional capital investment. 

I recently looked at an existing STR, but either the seller did not track the expenses or they did not want to provide them. 

If I rent it out and the rent monthly payment let's say covers the mortgage and HOA, the cash on cash return will be $40K(appreciation)/($ 42K (Down payment) = 95% and it will be 1.95 to find the cubit root and it is about 25% yearly return on my initial investment. 

It's all about risk in the event of a lawsuit, which can also usually be covered by insurance.- If you decide to have an LLC for each property, creating a Management LLC that all the other LLCs "hire" to run their books, will allow you to only require a bank accont for the Management LLC.2) You may not be able to do a Trust.

It's just an unfortunate side of house flipping when you're first starting out - you typically don't have your downside covered.  

Sorry if this has been covered before, we are located in Minnesota if that matters.   

Taylor sent multiple email inquiries to our insurance provider asking what risks their policy covered.

I am still obligated on the interest payment regardless of how much has been deployed but that is worked into the fund proforma and can be covered by deal cashflow.As to resale price, one of the last one's I did I sold for $125K and had a private loan for $85K which I wrapped.