I was hoping to connect with someone who has used this type of financing to purchase and manage an STR in any capacity.

The location seems great for apartments (apartment complex next door is at capacity) and there is growth all around.

California allows multifamily properties to expand housing capacity with at least one ADU inside, up to 25% of existing units, plus two detached ADUs on the same lot.

This is due to overbuilding STR complexes and all the extra hotel room capacity doesn't help out either.

I will also say that unless you are working as a single agency, I NEVER refer to my customers as "clients" because as a transaction broker we do not represent our customers in any fiduciary capacity.

@Khursten CornwallPersonally, I agree with your thoughts on buy with HELOC and refi, but there are several factors at play.Like you said, I like to keep my HELOC capacity for short term investments given its variable rate, or worst case a major unexpected capital need for me or my family (not to be confused with keeping in savings).The major factor I would look at is: are you actually increasing the value of the new property with your work. 

Not sure of their capacity right now, but definitely check them out.

This OP, as I pointed out in my previous post, “doubles|down” on the lie that (1) personal assets are not at risk  - they absolutely are as the OP admits, albeit with some non sensible justification about specific assets not being pledged(2) protects personal credit - as already stated the personal guarantee necessary will affect the credit card holders credit capacity , and as such find its way to their credit report, and hence affect credit scoring. (3) is lower risk - this may be the biggest lie of all.  

Buying it based on the pro forma NOI would take away from the value-add strategy because you're essentially paying the seller for the work that you will do and for the increased NOI that you will generate.If you find a multifamily property where the current NOI is not at full capacity and you increase the NOI, then the value is determined by applying the area's average cap rate to your new NOI. 

It's a high desire area for people to live, but the sewer treatment facility is at max capacity.