We purchased a property with them with a light 45-day rehab and after 40 days all communication ceased.

It merely means you will likely have a difficult time refinancing the property to a traditional lending source.

Hard money loans typically have higher interest rates and shorter repayment terms than traditional mortgages.

We are BRRRRing it and we’re originally going to rent traditionally, however we decided to look into it as an Airbnb, and when we put in current loan rates which will be near or at 7% when we are ready, we’d only cash flow about $150 a month 😱, but as an Airbnb our projections are around $1,300 cash in our pockets monthly. 💰 At this point is a no brainer 🧠 and we know if it doesn’t work out or we don’t like doing it we can always revert to a traditional rental. 

That's like saying stop lights are GREEN, red light means go, it's just total blatant BS. 

That being said, $110K is a bit light to start a lending practice.

Historically in EBR, though, once the exemption is in place, it is unlikely to be removed unless the property is reassessed, there is a complaint, or some other action occurs to bring non-owner occupancy to light, such as buying a new primary residence in the parish.

Anyone getting traditional financing on the home will have to have to have an appraisal, and the appraisal will be based on the comps.The only exception is if you find an all-cash buyer.

So they have to tread lightly/smartly in order to get paid! 

It’s important to ensure you’re comfortable with these risks and consult a financial advisor.If you choose to use a HELOC, consider traditional financing or private loans as alternatives if you prefer not to risk your home.As for your first rental, markets in the Midwest and Southeast offer great opportunities with turnkey properties that are tenant-ready and appreciating.