Ultimately, STRs are like running a business and to be successful you want to distance yourself from the competition.  

I have run into this as well. 

As a new investor, you should be looking to put together a strong, experienced team to help you side step any landmines you are bound to run into.

I run the numbers with even 5 or 6% and they great but 7+ just not good Just to add... if rate alone is making or breaking your deal, then it's already a losing deal. 

I was wondering if there is different ways people run numbers to find a good deal.

I never run credit so I am curious to know from current lenders that deal with credit daily. 

My partners and I run a residential assisted living focused fund.

We also are very verse on the Property Code Laws of what legally we must do and what is just good business.So @Ian McClure to answer your question, it would depend on how the new tenant was on boarded and what kind of business the owner runs concerning his property

The concept of the Housing Authority running out of money never even occurred to me!

After I would refinance and roll it into the next deal, like all BRRRR's work.Lets say I find a deal and the numbers run to be exactly like the situation above.