Hi Anthony, it sounds like you’re in a good position to start building your STR portfolio, especially with no debt, great credit, and rent-free living!

For your scenario, you would be able to afford $8300 monthly mortgage assuming no debts. ($200K/12 months = $16k/ month of 50% = $8333.

could it service the debt on $1m?

The owner does not want to extend the debt for 30 years.

.- China is issuing record debt to stave off recession, while the US bull market continues (Wallerstein).- Texas vs California Home Construction.

I’ve taken care of all my debt and am pre-approved for roughly $220,000.

That applies to replacement cost only and only if more $ is needed to restore the home to a pre-loss condition than what is available under coverage A.

Two views of ownership; owning the equity,  owning the debt. 

If you focus on long-term holding for five to seven years, then using the above scenario on the house you are looking at, you will make significantly more on appreciation and debt service than cash flow. 

The math behind Real Estate is not that complicated, Revenue - expenses and debt service = cash flow.