I just re-read and realized you're talking about getting loans for lien position 2, is that correct?

If it's net positive, then make sure to do it up to code, etc so the finished square space can count.

Essentially are you cash flow positive or negative each month?

Quote from @Jeff Roth: Hi Lina from Texas-Congratulations on your interest in investing in mid-term rentals and you are wondering how and where to get started.I get this question frequently from investors.Sometimes and investor is looking to keep their property cashflow positive as insurance and taxes have squeezed cashflow by turning units into mid-term or short-term rentals.First off, ideally, the property will cashflow as a long-term rental should something disrupt the mid-term rental model.You will also want to have the property be near where there would be a demand for mid-term rentals (hospitals, universities, research centers).Monthly rents for mid-term rentals are about 20% (+/-) higher than unfurnished similar long-term rentals.There are property managers that will manage mid-term rentals for you and I always advise my clients to use property managers to keep their investment as passive as possible and for compliance issues related to Fair Housing Laws and local regulations.To Your Success! 

I'm the single breadwinner for my family (2 kids) so I don't know if I'd have the time and energy to both run this rental and manage my work so I can reach the income level to handle the bigger mortgage comfortably.I feel like this chance for us to have a rental property with positive cash flow won't come often so I really want to explore it.

If one tenant moves out, the property remains cash-flow positive. 

I'm totally good with some sweat equity but I'm not in a position to do Roof, siding, structural repairs and such.

Although I’m guessing most people in this position would use Wordpress or something more customizable.

They have had nothing but positive things to say. 

Because you are not changing the tax return that reports the activity of the property.But... the IRS holds the position that Husband/wife LLCs can only be disregarded in community property states.