Sometimes it might be better to leave some money in the deal to get a better cash flow and provide a little more of a safety net.I hope that helps.

Consulting with a contractor or local building official is advisable to navigate compliance with safety requirements while optimizing your renovation project effectively

Excessive complaints or three violations in three years could lead to losing the ability to operate​.Impact on Neighborhoods: Non-owner-occupied STRs (Type 2) may cause friction in residential neighborhoods, as they often function like businesses, which can disrupt the local community atmosphere.Recent Regulations (2024 Updates):1) STR operators must obtain a permit for either Type 1 or Type 2 properties, depending on whether the owner lives on-site.2) Platforms like Airbnb are required to remove any listings that lack a valid permit.3) New noise and occupancy regulations apply, with stricter enforcement through permit revocations and finesThese regulations are part of the city's efforts to balance the benefits of STRs with the preservation of neighborhood quality and local safety standards.4o

With current rates, I am only thinking of a 5yr or 7yr arm.

There's nothing like getting your feet wet and just diving into it and learning along the way, as long as you don't lose an arm and a leg in the process ;) you will grow so much with this experience and learn to do more due diligence in the future.

Next, when  they sell their properties they sell at a break even and sometimes at a loss because its difficult to achieve refinance appraisal results when transacting in arms length transactions in these lower barrier stagnant market. 

The interest rate they gave me at us 7.70%, 5/1 ARM, rent to debt service ratio is 1.21My credit score is 672.

Quote from @Joe Yobaccio: @Chris Seveney I am trying a simpler version of a loan partial, but want to keep my name on the note and Colllaterlize it for safety of a lender and would like some feedback on the terms. 

Your budget can not dictate the safety of the project and your relationship with the town and permitting.

Terms are 9.5% fixed 10 year, Interst only with 20 year ARM.