I don’t think the competition in the smoky is light.

I unfortunately had gotten in a deal with the owners of the program, a few things later things started to come to light because of another situation.

Here’s why:Affordability: You can find solid properties here well within your $200k–$300k budget.Cash Flow Potential: Indianapolis has a growing population, a diverse economy, and relatively low property taxes compared to some other midwestern markets like Cleveland.Investor-Friendly: Indy is landlord-friendly with strong rental demand, especially in neighborhoods near downtown, universities, and revitalized areas like Fountain Square or Irvington.If you’re open to a strategy involving light renovations, there are plenty of opportunities to add equity and boost rental income here.

As soon as housekeeping gives the green light I reach out, thank them for being great guests and offer 15% off a future booking if they make it within 2 weeks.

Bought under assessed value, slight value add through cosmetic rehab (paint, light fixtures, flooring) What was the outcome?

Functionally, it operates as a 2-story home since the downstairs area has multiple windows in each room and plenty of natural light.

Something that didn’t need a complete overhaul but something that I would do light cosmetic cleanup in a good area.Reason being is that let’s say I bought a 5 unit building for 500k and put $100k down.Let’s assume that building has $100k in annual gross rents.

Also, your transactional fees appear to be too light which only makes the profits more lean....$5k carrying costs between debt service, builder risk, general liability, taxes and insurance.....and $7K for the exit.

There is some additional information that wasn't mentioned in your post above which sheds a different light on the situation.  1.

On paper, it looked brilliant..cheap money, quick turnaround, and a profit projection that made his eyes light up.It taught me that the real risk isn’t just the cost of capital, it’s the predictabilty of your exit strategy.