Property Management will charge $140 per month+$20 supervision fees.

Interest rates between a HEL and a refi are comparable, the equity in the property is equal to the value of the property and I only need about 50% to purchase another property.

Of the conversations I have had with people discussing hard money lending, some seemed opinionated in that the high interest rates and terms were enough to scare them off.

., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?

With DSTs you need to make sure that the various fees don’t negate your profits.

Fort Collins did it since the 1960s and only recently created a law against it because of rent rates.

I think most investors want to win on more than just the interest rate.

You can then rent at market rate but have to register it with the town annually and abide by their annual inflation rules.

If you can get a big 4-5 BR house with a view for a under a million bucks, i'm pretty confident you can cash flow it with a good return, even in a 6%-7% interest rate environment. 

They have had 100% occupancy at market rates and currently bring in around $2,000 per month in cash flow.