With comps ranging from $875K-$1M and your estimated build cost at $550K, the after-completion value gives you a significant equity cushion, making this project highly attractive to lenders.If you plan to hold and rent the property, you could refinance into a DSCR loan after construction, which bases lending on rental income rather than personal income.

We did that for about 3 years until Jeff informed me he'd fallen behind on property taxes, and all of his lenders called the loans due.

If you can rent it for $2,000/month, after fees, taxes, and potential maintenance costs, you’d still make a decent passive income.

On property number one, I would cash flow $750 a month after mortgage, taxes, and insurance if I also rent out the unit I live in.

Whichever loan that you decide to use, the interest will be tax deductible due to interest tracing rules.

Check with your municipality about how property taxes will change when you buy the place.

Interesting as there were a couple of posts a year ago after the widely distributed article in the media essentially calling it a STR crash.

You can always use a software like Turbo-Tax and follow the prompts.

Sell for more than that and you’ll get the leftover cash after paying off that x% of the loan.

This is also tax deductible.