You're thinking far further steps ahead and weathering the volatility to reap likely more a fat-tails esque reward which likely does happen at the turn of the next inflation wave(not this secondary one coming up).From 08-16 you could do the former, from 17 fwd it's best to the do the latter.

Building Codes and Permits: Insights on navigating local building codes and securing permits for this type of conversion would be incredibly helpful.Potential Pitfalls: Are there any common issues or unforeseen challenges I should be aware of when undertaking a project like this?

This would the common strategy (BRRRR).

DSCR for STRs is commonly mislabeled under the "hard money" umbrella, when it's in fact a 30 yr fixed, fully amortizing loan (same structure as Conventional), with rates similar to conventional. 

It's becoming more and more common for people to find longer stay options on Airbnb, especially since Airbnb started promoting longer stays last year.

@Francesca Zanzucchi Most of the delay is caused by the banking-controlled ACH system. 48 hours is the common "promised" turn time, but our reality is 3-5 business days.You should look into the 10 day delays, as most payment software is automated.

It sounds like you and your best friend have a solid plan in place and are eager to get started.Regarding your question about structuring your business, you're correct that forming an LLC is a common route for real estate ventures due to liability protection it offers.

The investors I know that use the common approach of putting 20% down and using new loans from a bank are choosing to invest in Ohio, Indiana, Georgia and other less expensives states.However, folks from CA find using creative finance to invest in AZ are making big bucks.

I like that structure if your LP's are good with it and the project supports those numbers.More common syndication structure is 2% acquisition fee, 2% asset management fee, 7-8% preferred return, 70 (LP) / 30 (GP) split.

Dredging for sand to build up a spot is pretty common anywhere.