I bought a property that was on the market for 7 months and was nervous other investors saw something I didn’t.

This is not “student housing” in the traditional sense - even the vacancy risk doesn’t exist as it’s a 12 month lease / they work over the summer there, etc.  

So, in reality every month your moving close and closer to sucking out months/years of profits via items aging out, cap-x coming to bear. 

You could live in one unit and rent out the others to offset your mortgage, staying within your $4,500/month affordability limit.

My partner and I put on some investor forums monthly in Scottsdale, great way to connect with other investors.

Everyone should shoot for their worst door over $500/month, that is awesome.

The loan is 12 months, pulls twice a month, the interest is minimal because I'm paying it off so fast. 

From the financing side of things - keep in mind that conventional cash out refinances require 12 months of seasoning in order to use the new appraised value.

Refi after construction.These numbers consider only the portion of costs of the HEL attributable to the land purchase, not the payoff of the HELOC (which we took out to buy the Seaside condo).Cash In:                     $66,166 (Cash, 1 year of debt service of HEL, debt service of const. loan, furnishing)Amount Financed:      $548,000 (home equity loan + construction loan + closing costs)Total Cost of build:     $614,166ARV:                               $850,000 (or rather "after construction value")Refi                                $637,500 (75% of value + closing costs)                                        Cash Out                       $89,500New payment             $4500/month (54,000/year)Estimated Cash Flow (pre-tax numbers, so actual mileage may vary)airBNB year 1:            $70,000     (net income $16,000)airBNB year 2:            $100,000   (net income $46,000)airBNB year3+:           $120,000   (net income $66,000)ROI (construction year):    0ROI Year 1 of STR:              24.2% ROI Year 2 of STR:              69.5% ROI Year 3+ of STR:            99.7% Did I calculate these ROI numbers right? 

The return would be $50K profit per deal in 5 months.