Depending on how well you set it up, you may be able to break even, or even positive cash flow.

If they are paying out 5% rates to their customers to relend out they usually need at least 150 spread to make any money.CMBS and LIfe Insurance can be lower on the interest rates but you can get yield maintenance or defeasance which is very expensive if you want to break the loan early.

Attached is the pricing guide breaking out the GA - Standard and Pro Member - Standard rates.

The other option is simply charge them $X (equal to one month's rent for example) and if you find a new tenant sooner, then keep all of that money as it is a fee for breaking the lease vs the first where they are paying rent.

Hi John - We do have one property that will not be profitable or just about break even in 2024 due to all the unforeseen maintenance items:  pool heater, roof, pool fence, handy man over a dozen times, remodeling took 3 months instead of 3 weeks, etc. 

Now, let's break that down...

When a guest grossly breaks your house rules from the beginning.  

These lenders are not only more adaptive but also provide support that can make or break your project.

Even with vetting guests, they still sometimes break the rules and bring large dogs or have parties. 

Estimating based on running numbers in Rochester, NY, at that purchase price and total rent you probably end up breaking even before accounting for maintenance, vacancy and capital expenses.