Thanks John the issue is the seating position.

Each path has its own positives and negatives, strategies, and options. 

Property owners in these areas can only advertise for monthly rentals and are not permitted to offer daily or weekly rentalsandIn March (2024): Florida lawmakers passed legislation granting the state more authority over short-term vacation rentals, potentially impacting local regulations. 

It’s too soon tell but from what I’m seeing the hit on the Federal workforce is also impacting contractors throughout the DMV… I expect panic selling which increases inventory, however, with higher interest rates, which will likely continue upwards if tariffs & deporting our cheap labor comes to fruition, first time homebuyers are shut out.  

Even this is an incomplete list.Worst of all, the main reason not to make this loan is that you will not hold a first position-lien against the property.

To make it work, ensure your HML allows second-position financing, negotiate favorable seller terms, and have backup exit strategies.

Selling- Even if this property eventually turns net positive, at what cost?

-------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

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