It’s crucial that your STRs get reported correctly and that documentation is solid in the event of an event.Ideally you would have met with a cpa before doing a cost seg so you know that you’d be able to use the accelerated depreciation. 

It will be highly dependent on the LTVs, but 2nd's on investment properties get sketchy. 

Can you get a great deal on the purchase? 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, immediate cashflow and at the lower end of relative rent & value appreciation.

This is for a house that sits on a small hill in the city so it would need to be someone also familiar with getting the right permits to do so in San Francisco.

VRBO has a nifty AI function that supposedly repositions your photos to feature the ones getting the most hits. 

Get out of your comfort zone.

I'm curious, at what point does this reflect poorly on PM and suggest I should get antoher PM?

No way is this a scheme to keep EM for the seller..Anytime I have had EMD disputes it usually gets solved with a 50 50 split since I know what will happen.. what happens is exactly as you describe.. money is to small to realistically hire an attorney to collect..

The market in Racine is much different than Kenosha and we have been having a hard time getting quality tenant applicants.