Ensure the STR’s projected income comfortably covers new debt, even with conservative occupancy rates, and maintain reserves for market changes or vacancies.

The city has been undergoing massive revitalization over the last 10+ years, has seen its first population uptick in nearly 70 years, and prices have doubled in the last 5 years.A lot of folks are finally starting to understand there's a lot of interesting growth happening in Detroit.

I just closed on yesterday that is in Clearwater and closed for $660k with all furnishing and it projected to do over $90. 

The question is at what point do people start massively cashing out?

Most lenders are going to want to see a few big things from the ownership group. 1) The borrower will be the enitity (LLC, S-Corp, etc) and any owner with usually 20% or more of ownership in the entity will be expected to guaranty the loan, 2) We'll want to see some experience doing similar projects from at least one of the main owners, 3) We'll want to see bank statements showing liquidity enough to cover the intial cash injection (down payment), the closing cost, and some cash in reserve.

What I'm most concerned about is the Project 2025 plan to gut HUD and most social services.

I'm doing this because then I can cashflow the renovation without having to take out reno loans, it takes a bit longer because projects get done as I have the money to do them but for me I prefer to be a bit more risk adverse and have less debt. 

who would post tons of local rental listings and had a massive following on IG and YT.

That would be a prohibited transaction and self-dealing and would cause you to incur massive penalties, blowing up your IRA.  

They said that kind of project would basically convert the property to an apartment building and requires R6B zoning.