There is actual potential to scale and develop a market position that beats stick built in modular, in my opinion this doesn't exist with container builds.

This would set a very bad president of placing a tenant in a position of being fully responsible for your property.

Hi @Shawn Good my wife and I are in a similar position and would like to buy a STR in the fox lake area that we could also have for personal use as well.

Yes, being in a second position is generally considered higher risk because the first mortgage takes priority if the borrower defaults.

Alternately, it will greatly improve your negotiating position if you elect to partner with a builder / developer in the area to  actually bring the project out of the ground together.

Positive?

Hey @Christopher WissingOut-of-state investing makes sense if you're looking for positive cash flow and your market has appreciated to the point that it no longer does that.  

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

Look at this as a positive because maybe its highlighting your lack of preparedness to manage the property yourself.

Regular properties are probably in a better position because people always need a place to stay, and if I'm not mistaken back during COVID if you had a tenant who couldn't work you could call your bank and pause the mortgage.