@Tayvion Payton here's some useful info: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?

It applies to STR in the same way.Is anyone here adjusting their investment strategy because of this?

I asked our manager about reducing the rent but he said we are asking a fair amount and we are getting lots of interest but a lot of cancellations, no shows, or people who don’t follow through with applying or don’t meet minimum credit score.

It’s an area filled with short-term rental properties owned by a mix of out-of-town hosts and locals, but I know the advice here can apply to hosts and managers across the country!

It really doesn't apply as much anymore in most markets because rates are too high and homes are selling for too much. .75% rule is more viable and would be the new 1% rule in this market.

This initial negative equity position consumes the initial cash flow.  2) the addition of the adu makes the property multi family and likely makes rent control apply.  

Sorry, English isn't my original language.On 11/6/23, I applied to Lendbase for a commercial loan for my business.

That may not apply to you, as a financial professional, but I thought I would share the story.Obiously you could re-lever your portfolio to bring the ROE back up, but then you have to place those borrowed funds somewhere that nets a high enough return that the portfolio is ahead, given the drag of the interest and any transaction fees.    

This will be my second time its listed and so far I've gotten quite a few people interested in applying and only 2 that actually have so far.

They still look at you and anyone else applying for the loan.