New loan is a 10/30.

Don’t overlook the 10% down second home occupancy loan for financing a property like this.  

We were trying to buy a loan that was in default and the current lender was emotionally attached and has it listed for over $2M when comps are $1.5M. 

So they started doing the loans that everyone else turned down, ultra high risk development deals, second mortgages, land loans at ridiculously high LTV, loans where the borrower has none of his own capital invested, 85% of AFTER stabilized value loans.  

I would include servicing costs of the loan and licensing costs.

It’s s about knowing how to position yourself in markets where demand remains resilient, even when global STR margins are tightening.So yes, I completely agree that the game has changed, but for those willing to tackle the hard stuff in overlooked international markets with large American populations, the opportunity to combine cash flow with long-term appreciation is very much alive.

Bridge Loan: A bridge loan could provide the $150,000 you need until your tenant-free property sells.

The problem was, they only had enough money for a 3.5% down payment and an FHA loan.

This should roughly take me to 150k per year and carry the loans for land and construction.

From my experience, when I dive into the costs associated with building an ADU—including construction expenses and financing options like hard money loans—it often doesn’t make financial sense.