can totally enhance a working relationship. 

I’m totally hands off. 

Refi after construction.These numbers consider only the portion of costs of the HEL attributable to the land purchase, not the payoff of the HELOC (which we took out to buy the Seaside condo).Cash In:                     $66,166 (Cash, 1 year of debt service of HEL, debt service of const. loan, furnishing)Amount Financed:      $548,000 (home equity loan + construction loan + closing costs)Total Cost of build:     $614,166ARV:                               $850,000 (or rather "after construction value")Refi                                $637,500 (75% of value + closing costs)                                        Cash Out                       $89,500New payment             $4500/month (54,000/year)Estimated Cash Flow (pre-tax numbers, so actual mileage may vary)airBNB year 1:            $70,000     (net income $16,000)airBNB year 2:            $100,000   (net income $46,000)airBNB year3+:           $120,000   (net income $66,000)ROI (construction year):    0ROI Year 1 of STR:              24.2% ROI Year 2 of STR:              69.5% ROI Year 3+ of STR:            99.7% Did I calculate these ROI numbers right? 

Some great information here and totally agree with it .

Is there a limit or target for what I should consider in terms of total return or cash on cash return for this strategy?

Also is your rent covering just PITI or total expenses?

@Michael Whitman , it would totally depend on the company, but you make a great point.

There's a 2nd account with 5 payments total and 3 of those were late.

I bought 8 properties through REI and then bought one on my own in an area REI manages (so 9 total that REI property manages).

This is the hospitality sideThey are two totally different skillsets and so I think they should be taught independently of one another.