@Jeff Nash and @Doug Smith - We are soft piloting a partnership program with Real Estate Professionals that want to bring this to their local market. 

Remember your costs will be more for an STR, you'll be paying for a lot of things you wouldn't with an LTR - higher STR insurance, all utilities including internet, supplies like toilet paper, paper towels, dishwasher detergent etc, upkeep on furniture and linens if damaged, yard maintenance and grass cutting/snow removal, trash removal, etc.  

You should have $150k in mind though so you're prepared for worst case - and also to allow for soft costs (permit fees, etc.)$75-90k is typical for a garage conversion ADU in Sacramento.

How much cash have you already injected into the deal including soft costs like architectural fees, permitting, etc...that you can document.

Although, they are only washing the duvet covers, throw blankets, and kitchen towels. 

I have some soft quotes for bank debt but I'd prefer to stick with private debt if possible. 

Although tends to be regional a lot more than passive investing.. there are still red hot markets in the US for new builds and some markets are very soft to declining..

One of the issues is that the floors were replaced as part of the rental in 2022, but months later they began to feel soft.

We build high end for $600/SF all in - soft and hard costs.My question, just to throw out there and brainstorm, out of the 4 MF lots, what type of mix would you throw out there?

The stuff is almost as thick as lots of your paper towels and paper towels have been known to cause clogs.