@Chris Seveney, 80k was derived from a walkthrough conducted by my contractor. 4 months is based on the fact that the units themselves need mostly cosmetic work, and the basement being the biggest project.

It is good to hear that you were able to derive such success for your transaction and inspires me to consider that it may be appropriate for me to dig a little deeper when I come across similar situations. 

That being said we are deriving 80% of our revenue from Air BnB.

My price is directly derived from my valuation, and these owners have mentioned that the cap ex, maintenance  and management allotments are to high(I'm using the standard %'s) which makes my offer to low.

Note if you use the equity approach, you will also have to take a negligible few grand cash out to show a derived benefit for the refi. 

This is an expansion of a product already available and the expansion is designed to compete with other lenders who have the same product ALREADY in place in those areas. also as @Bill F. mentioned the GFC wasn't because subprime as much because a supercharged derivative market that attached itself to it. anything can be a doomsday predictor if you want it to be, which this forum loves to do 2-3 times a week#theskyisnotfalling

. :)The deal with the 100 mile rule is only applicable if deriving rental income from the departing residence is needed to make the numbers work.VA - will count departing residence rental income once you've got landlord experience.FHA - will count departing residence rental income in very rare circumstances that aren't applicable to most people. 

The term "house hacking', in my opinion, is derived from the internet culture of hackers; hackers hack websites in order to gain unfair advantages.

I also love analytics, the truth is always in the numbers, and I love the endless strategies and systems RE investors have derived to be successful.  

Here's an example of how the math usually works when I look at it...http://www.loopnet.com/Listing/3121-3205-Orange-Ce...Purchase price = $2,480,000NOI before debt service (derived from 7.6% cap rate) = $188,480If 80% of purchase is financed over 30 years at 5%, that is $127,807.68 in annual mortgage payments.This leaves $60,672.32 in profit every year, until Year 31 when the mortgage is paid off.This is a down payment of $496,000 that you wouldn't see back until over 8 years.