Will you be funding your own rehab or would you need to roll those funds into your initial loan?

Frankly I’m not sure how profitable they are long term.

Most lenders I work with would lend you 70%-75% of the value of the property, but only so much that your NOI/profit is 20%-25% of the monthly loan payment.

100% VA loan, which allowed me to put money saved towards renovations.How did you add value to the deal?

The rules are pretty complicated and the only people who really know all the terms and rules thoroughly are the Rent Levelling Board.Caveating that I’m not an attorney so go seek your own advice but I clarified a few things at a recent rent levelling hearing (which are open to the public and you can find the schedules with a simple Google).

Many investors are successfully renting out their ADUs to short term travelers.

I would get an attorney or title company involved to create your loan documents to ensure they comply with the law and cover all the aspects you need.Another method that is likely your best bet to take on investors is to create a joint venture (JV).

The only exception might be if you plan to and if your market supports short term rentals.

Great tools that get updated regularly.I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.We are all here to help you learn and grow.

Is it best to just throw cash flow at the loan untill the principal is paid off (current cash flow between the two properties after interest and all expenses are paid plus vacancy rate = about $250 left monthly) refinance at renewal to pay it back in full?