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.

Quote from @Kate McDevitt: I agree with Chris, get a loan for rehab..

Bridge Loans or Mezzanine FinancingShort-term financing can cover the down payment:✅ Private lenders: High-interest, but great for acquisitions✅ Mezzanine loans: Secondary financing sitting behind a primary loan✅ Cross-collateralization: Leverage equity in your existing motel or rentals4.

Considering selling a home for short-term rental (STR).

These guys did this for over 20 years .. it was determined that they actually made less than 12 loans in the whole time bringing in Millions of dollars 10k at a time to small of an amount to sue over..

Too large to be a normal convention loan, but not big enough to be tasty for an investor that wants some size.

Loan had high terms of 9.5% calculated to 20 years and a balloon payment on the 3rd year coming up this April 1st.

@Nate Williamsthe terms of seller finance are whatever you agree to with the seller. 

There are only 2 ways, as I see it in the current market, to get actual income/cash flow from a rental property - a paid off long term/mid term property or a well bought short term or rent by the room rental.

What are your long term goals with real estate?