Additionally, it can help maximize renovations and improvements.A Cost Segregation study is an IRS approved federal income tax tool that increases near term cash flow by utilizing shorter recovery periods for depreciation to accelerate return on investment.

With lower commission fees, investors could increase their ROI on properties they intend to hold for shorter periods or those targeting travelers, temporary workers, or tenants in transition.

Also curious how others navigate our short term rental laws (seems like many property owners are advertising for periods shorter than the 14 day minimum) Also curious if many owners are actually paying hotel taxes to the county or waiting for more clarity on the law

PML and the other lending sources typically have different programs they offer that are less strict on underwriting but that additional risk comes at a cost of usually lower LTV, higher rate, higher points, and shorter duration (think 9-18 month loans instead of 30 year loans).  

Most IRA lending tends to be higher rates for much shorter periods. 

You could always offer a shorter lease that ends in May/June to give yourself an opportunity to find new tenants or raise the rent to market at that time.I hope this helps and if you ever need any guidance or want to chat about the process of assuming an existing loan, I would love to connect! 

How Cost Segregation Works: Cost segregation studies break down a building's components into categories that can be depreciated over shorter periods.

The shorter the prepayment term has an impact on increasing the rate.4.

The same is true for owner-financed deals on a shorter term note, in the 3-5 year range.

One option I discuss with my investor group is doing a 1031 TIC into a passive syndication that has a shorter time commitment (aka 1 year).