Here’s what I’ve learned so far: Investors want deals with solid profit potential—so they’re always looking at the numbers: a good ARV, reasonable rehab costs, and enough room to make a return.

Clearing potential building sites.  

A better comparison is to compare your potential real estate investment to whatever else you might do with the money.

Non-compliance can result in penalties up to $500 per day and potential criminal charges.

Here is some key information:Property recently hit the market and has 2 cash offers alreadyThe seller provided a pre-inspection report, which I shared with 2 different lenders, both think it may fail conventional financing due to potential structural and electrical issues (realtor thinks it could pass conventional)Seller has 100% equity but is behind on other payments (not sure of the urgency money is needed)This is my first attempt at an “investment” property so I’m new to thisI see 3 optionsMove forward with an offer using conventional loan pre-qualification-Not as attractive of an offer to the seller-Possibility that appraiser calls out structural/electrical issues that need to be fixed before closing, effectively causing financing to fail- Best terms and fewest loan fees for meUse a rehab style loan such as ChoiceRenovation-Even less attractive than a conventional offer to seller, but less risk of failed financing if appraiser calls out issues-Slightly worse fees and interest rates compared to conventional-Lenders tell me possibly up to 60-90 days closing in some cases, with red-tape for contractor requirements and draw schedules (sounds like the most hoops to jump through during rehab)Use a hard money lender-Most attractive loan option I can give to seller so I can compete-Much higher fees and interest rate for me-need to refinance into a conventional at the end of rehab (not familiar with seasoning periods but I think this is a factor as well)Which option would you do?

Also look into whether the city has already set up regulations around STR or whether there are potential changes coming down the line. 

If a bank has to pay out 5% to get deposits then they usually want 7% to lend back out or it's not worth their time.  

@Alex Silangyes, i will buy - but only to BRRRR, or on seller financeand only if the numbers workmade 2 offers toward the end of last year on potential BRRRRs and got outbid. 

I understand the one time event thing but I foresee potential issues with each applicant because of what's happened to them in the past year. 

I understand Vermont has slightly more stringent regulations to contend with but it would also be closer for us geographically and thus potentially easier to manage.