But here is a healthy measure of living large.

The "half assed rent collectors" you alluded to - while I don't advocate for that approach, and it's not what we do - have figured out that there is a market for exactly what they are doing.The real question is, is there a market for what you're proposing?  

Because Class C & D tenants will statistically cause more damage to a rental than Class A or B tenants.While "maintaining to the neighborhood" is a logical approach, it's often difficult to put into action.

The approach they use is from the old days - brow beat you into signing on, VERY HIGH PRESSURE SALES MEN, telling folks they are getting a 50% off the scholarship from $20K price tag, only available during the call.

I couldn't believe the amount of development in Carmel - new apartment complexes with rents approaching California rent (over $4000 for a 2 bedroom apartment). 

Assuming the property is equally owned 4 ways (25% each) you could have the property appraised for confirmation of value: $1.8M/4 = $450k/share x 3 = $1.35M could be obtained as a cash out refinance, potentially utilizing a healthy portion of the STR or projected STR income to qualify. 

Can you give me scenarios & step by step approach? 

I take a fairly personal approach and like to build a relationship with my borrowers, but the fees aren't ridiculous and the interest rates are reasonable 😊 reach out if you want to discuss. 

It's been a great investment numbers-wise but not so great having to deal with the issues that come from a bad neighborhood (crime, trash,etc)for the SFH my approach was different.

Pain points that I'm not yet aware of in this space, that I can potentially approach differently/with a new perspective.