Here's the deal:Purchase Price (PP): $95kRenovation Budget (via HML): $60kTotal All-In Cost: $155kARV (After Repair Value): Around $200kRefinance (via DSCR Loan): 7% interest, 30-year fixedRefinance Details: After the refi, I will pay back the Hard Money Loan (HML) at 11.95% with 3 points:HML: $60,000Interest/fees: $3,585Other costs: $1,800Total to pay back HML: $65,385After the refi, I will have $84,615 left in cash.Cash Flow & Expenses:Expected Rent Income: $1,700/monthProperty Management (PM): $126/monthInsurance: $100/monthTaxes: $126/monthMortgage: $1,043.75/monthTotal Expenses: $1,395.75/monthSo my monthly cash flow is about:$1,700 - $1,395.75 = $304.25/month in cash flow.Return on Investment:Cash Invested After Refi: About $18,385 (after paying off HML and closing costs).Annual Cash Flow: $304.25 * 12 = $3,651Cash-on-Cash Return (CoC): $3,651 / $18,385 = 19.8%I didn’t account for maintenance costs since it’s a full gut rehab, and everything is brand new.

Say Income tax rate is 25%. 

now, if you want to buy an STR as an investment, and you NEED the income to support it, that's totally different...

You spend a lot of time and money having people do this work, and at the end of the day you don't net any more income compared to a long term rental.

Higher taxes rates can impact both your buying power and your passive income as an investor. 

You could improve and seller finance the land to blue collar workers that make decent income.

Multifamily properties provide higher rental income and lower vacancy risk, but they require higher upfront costs and more management.

Wyoming has no state income tax.4.

I then did some wholesaling, land flipping, did some more buying and am now just doing lending to build up active income.

My goal is to have passive income!