If market conditions change or unexpected expenses come, you might find yourself over-leveraged.Cash Flow Considerations With both a hardmoney loan and a HELOC, your monthly obligations will increase.

From unexpected fees and rigid terms to missed opportunities due to slow funding processes—these factors could be impacting your bottom line more than you realize.Have you ever re-evaluated your financing strategy?

It’s also important to think through what happens if one partner wants out or if unexpected issues arise.

My friend ran into some unexpected zoning issues when he started adding RV spots, which set him back a few months.Since this is your first STR venture, it might be helpful to connect with others who've walked this path.

It’s no accident that many of the groups you see today running into serious trouble are groups that acquired a lot of assets near the market peak using tools such as this that juiced projected investor return. 

You suffer large unexpected expenses.

The real problem comes in when the unexpected happens, like a roof repair, or a boiler replacement, on top of the negative cash flow.If it was me, I would try to save more, take out less debt, to help with cash flow.

@John Mason as a PMC we seem to get sued by tenants for slip & fall "accidents" every year:(What's frustrating, is that it seems to all be a big racket.

My first DSCR loan experience was unexpected. 

Just think about it.People have an accident on a rented boat and blame you because you provided the booze they drank.Now that would most likely be a scam of course but it could work.