The vast majority of "regular" or traditional (Conv/Govt) mortgages are originated by specialty lenders and brokers and are sold in the secondary market to provide yield on bank balance sheets (think Chase or BoA) or to be securitized into MBS.

Chicago cap rates are lower then interest rates so what I see clients do is rehab to add a ton of equity/boost rents and then either just hold it or do a partial cash out to get back 1/3 or 1/2 the money in the deal which gives you a higher COC.

While it's true that many investors are drawn to the Midwest for favorable cap rates and the 1% rule, Las Vegas still holds potential, especially for short-term rentals like Airbnb due to its high tourism volume.

Everything has been cash so far but I have contacted several local banks and all of them have said about 1-2%+ above regular mortgage rates, 3-5y ARM with 15-25y term, and 20-30% down.

We have recently partnered with Outsite.co, one of the largest coworking/coliving communities in the world to handle booking and management.The property itself has appreciated and we are watching the market to determine the best time to hold a capital event.

Screening tenants well and then a security deposit or credit card hold process in place will limit liability.

We plan to hold for at least 5-10 years and likely 1031 exchange into something larger or land.

But after getting to a certain point in the process (keep in mind I haven't closed yet) I am left feeling extremely nervous with what the future holds on this property as far as some things go.

I worked in sales before going full time in my rental property business- making 5k plus $120/mo could have been done in a regular job with less work than doing a BRRR SFR.Your family and your well being are too important to put on the back burner!

While this is regular due diligence, mistakes can be made when the market is hot and you have to move fast.