We use a YTDpaystub and last year’s W-2(s) to calculate income several different ways:Hourly or salary income calculated to a monthly amountYTD income divided by number of YTD monthsYTD + W-2(s) income divided by the corresponding number of monthsIf these numbers vary too much, then we investigate and require an acceptable Letter of Explanation.Employment StabilityUnless an applicant has exceptional credit, we strive to determine their stability of employment to make surethey’ll always be able to pay the rent on time.

From there, there still may be operational issues such as the  property being too seasonal and having a bad weather season or the market simply losing popularity.

Without seeing it, there is no way to really determine the costs. 

Those guest protection policies for most other channel managers are simply priced as a flat rate <$100 per stay insurance policy.

Even if it's not as good as you'd like simply hang on and then refi later down the road as interest rates come down with time.

I’m aware that money is likely going to be spent but, assuming it doesn’t, then can you still make tax free cash flow simply off of the recurring deductions like interest, management, hoa, utilities, taxes, insurance and depreciation? 

@Blaise Peterson better if she tries it out part-time to determine if she likes it.

Your expense ratio remains flat, and therefore doesn't really create much value in the deal.Compare your 2% rent and expense assumption to what most syndicators underwrite: 5% rent growth after an initial renovation bump; and 2-3% expense growth; and you get vastly different outcomes.As to whose assumptions more closely tie to reality is to be determined, but if you used assumptions more in line with what syndicators are using, I think you will find the return projections narrow dramatically, if not flip to SFRs.  

The appraiser will do a 1007 to determine the market rent and the lender will use that figure to calculate the Debt Service Coverage Ratio.

Talking to contractors and they suggesting to simply start over.