If you do the math, since your borrower is paying interest on interest, it raises your effective interest rate by about a point.

But once you have tenants, the big question arises: Should you self-manage or hire a property manager?

Self-managing is definitely the way to go!

Although it's possible, most new investors don't have the skills, resources or network to effectively self manage. 

Whatever I do, I would need to do with a HELOC—effectively financing 100% of the property (down payment and closing financed with HELOC, rest of purchase financed with a mortgage). 

As a starting point: -If they work full time and make $700k a year -Don't want to or can't spend time self managing a short-term rental -Don't have a spouse who wants to take the lead on managing the rentals They are likely not going to directly reduce their taxable income with real estate year-to-year. 

My immediate area, 5200 people, has 3 outdoor self storage and 1 new climate controlled.

IE - they do not let inexperienced new investors self-manage their own properties. 

Purchase price: $940,000 Cash invested: $250,000 I purchased a Self-Storage Facility.

Has anyone in this group had success with self storage syndications?