Seller is the Agent.Seller bought property in January of 2023 for $730,000Current “As Is” Value : $770,000Target Acquisition Price: $730,000-$780,000 After Repaired Value: $900,000Repair Estimate: $120,000Initial Offer Amount: $715,000Loan Program: Bank Statement Program.Total Estimated Monthly Payments (Principal, Interest, Taxes, and Insurance) $5500/month (based on $770k purchase price)Estimated Gross Yearly Income from Short Term Rental: $160,000 (65% Occupancy, $700 a night| (STR Listing Comparable properties Listing 1 Listing 2 Listing 3)Net Monthly Income after management and taxes: $11,751.25Net Monthly Income after Mortgage Payments: $6251.25 ($75,015) Per YearTotal Cash Investment: $297,000 ($177,000 in down payment and closing costs and $120,000 in repairs)Average Yearly Return on Investment: 25% yearlyAverage increase in property value per year: 5%Average increase in booking revenue per year 7.5%Property Value average after 10 years: $1.5 millionTotal Cash received over 10 years: $1.3 million.Total Equity multiple min over 10 years: 6x total return on $297,000 invested.

Net post-mortgage: $91,586/year.

Do my 3 associates need to create a LLC to be able to do these renovations or can any individual do them, as long as proper permits are pulled? 

Seller financing, subject-to deals (taking over the seller’s mortgage), or lease options can create terms that work for both parties.

By the time you factor in insurance and any cap ex....it's already a loser...even if you aren't carrying a mortgage.  

My goal is for the foundation of my company to be solid and to grow properly.

They simply skip over/ignore concepts like vulnerable persons, equity skimming, equity stripping, bank fraud, wire fraud, mortgage fraud, escrow and closing, etc  It's now the "thing" to do.What could go wrong?

An article from The Mortgage Reports explains:“The amount you need to put down will depend on a variety of factors, including the loan type and your financial goals.

So if I understand correctly, RWN brought shady deals to their investors, watched them invest without proper due diligence and investors got screwed?

I’m thinking with a 2.25% rate, that’s a good mortgage to hang on to if it performs well as a rental.