The overall LTV (including all 3 mortgages) will be key and your selling point will need to be that the 2nd mortgage ($8k) will burn off in 2.5 years (based on your surprise that it was even out there, I'd recommend that you follow up in 2.5 years and ensure that it's been satisified, so that it doesn't surprise you again in the future).Does the $8k grant vest over the 5 years? 

I know they’re an essential tool for analyzing a property’s financial performance, but I want to ensure I’m approaching them correctly.Could anyone share examples of what a good T-12 looks like or highlight key items I should make sure are always included?

However, consider STR seasonality, local regulations, and management demands, and ensure your equity loan and new primary residence costs fit comfortably within your budget.

I recommend that you engage with a real estate accountant to ensure you set everything up properly. 

During the partnership, you can jointly manage the property, increase its value, negotiate a flexible repayment plan with the seller that allows for larger payments after the property appreciates, ensure a written agreement that clearly specifies repayment terms and timeframes and refinance, and the sellers are able to 1031 at their leisure? 

Best way to find end buyers is to ensure it's well marketed - Professional photos, professional clean prior to listing, aggressive list pricing.

Mitchell Bernier Thanks for the housing data.  

One thing to be careful with though is that if you go the personal loan route, you need to ensure your DTI is still fine and you will still qualify for your VA loan assumption AND the second mortgage.

If you get a quote significantly below the numbers above you need to ensure that the contractor will actually execute the work and perform it to the required standard. 

I’m excited to make this opportunity a reality but want to ensure that I bring the right partner on board to make it a win-win situation.Looking forward to hearing your thoughts and thank you in advance!