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

Umbrella insurance is crazy cheap for the benefit, and it already requires you max out your liability on your other covered items.

It is always better to start with a multi-unit 2+ so that if something goes wrong, you still have one tenant to cover necessary expenses (mort, taxes, insur, etc).Also, major renovations are not a great idea for starting out as others said, especially out of state.

The difference in locations between one mile and five miles could be highly subjective and difficult to nail down.

What service or value are we providing that it covers?

Mainly I’m trying to avoid “aged poorly design” glassblock walls, small bedrooms, older windows (wood/aluminum, single pane), aluminum patio covers, and to a lesser extent landscaping.

Possibly as an incentive you cover anything over a certain amount to give peace of mind to the renters.

If you do, figure how many of these things you’d really fix, what that would cost, and how much of that you’re willing to cover.

No one in their right mind is going to file a lawsuit over 2k.. they may and should just take you to small claims and or as Greg stated file their lien and wait.Also work done to YOUR satisfaction is a pretty weak argument and totally subjective.

These properties can often be acquired through creative financing methods like:Seller Financing: Negotiate flexible terms with motivated sellers who want to avoid traditional bank processes.Lease Options/Subject-To Financing: Take over a seller’s mortgage without assuming full responsibility, especially for properties needing renovation.Creative Terms: Adjust terms to fit market conditions, like offering lower down payments or longer payoff periods.Staying connected with investors and tailoring deals to current conditions can help you secure opportunities even in challenging markets.