Sounds like an interesting project but I am sure there is more to the story.

Those sounds like great rentals and vacancy rates have been decent - our management team only has a handful of vacanies out of the 300+ we oversee, thankful for that.

Indian Rocks beach which was a huge STR area was completely demolished.  

The plan was to have the properties completed in 6 months make some money and be on our way to real estate riches.Turns out a lot of the framing was rotten and we had to completely reframe the back of one of the houses.

A complete Ponzi scheme and I have first hand experience.  

It always sounds attractive. $300 a month for leads?

@Rami Refaeli  Sounds good Rami.

Annual fee $25.PenFed - max 3 other properties, 89% LTV Regions- yes HELOC but no LOC SCCU Florida 70% LTV, 6.25% interest only, not LLC Sound CU "non-owner occupied HELOC, capped at $150K and interest rates are prime + 2%, 3% or 4%, based on credit, not to exceed 70% ltv.”TD Bank TIAA Direct was EverBank Tower FCU, all states except TX, max 45 DTI, green card ok.

The primary risks at this point would be       1) to your lender, the risk of a margin call.       2) To you; underestimating the true cost of a project and cost overruns      3) To you; legal risk of securities regulations if  So it sounds like im not missing anything on the risks, from your perspective at least. 

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.