It could go higher with additional work to the house.

I don't have the 10% for the down but thinking of using a HELOC to get the money and then add it into the calculator.

Not sure the cost of this for you but I feel with hot tub and fireplace you already have a lot of warming options and not get much additional revenue.

Additionally, the boots on the ground partner has to be extremely trustworthy.

Hey Tim, If you are not using Hospitable yet that would be my first addition.

These are professionals with additional training and a stricter code of ethics.

Additional Info —Key Details:Location: Outside Santa Fe, NMProperty Size: 20 acres (valued at $80,000)Project: Two new STR unitsExisting Experience: Family has two fully-occupied LTRs nearby, generating $2,000/monthConstruction Approach: Self-contracted with licensed trades for electrical/plumbingCost Assumption: $80,000 per unit, plus ~20% for inflation (based on 5–8-year-old build costs)Financing: Using land equity as down payment on construction loan (expecting closing costs to be major expense)Request: Looking for feedback, potential pitfalls, and general guidance

There are also 'mezz' lenders (typically for larger transactions) who will cover up to 90% CLTV and require you to bring the remaining equity to the deal, and additionally there is Gap Funding in the form of unsecured personal debt.The latter can potentially be the most expensive option, but allows for true 100% financing as there are no restrictions for how to use these funds, as they are unsecured, and generally obtained through personal credit, income etc (since there is no collateral for obtaining these funds).

You would also want to add the LLC entity as an "Additional Insured" party onto the landlord insurance for the property.

As a limited partner, you would be able to participate in the project without being involved in the day-to-day operations, while benefiting from the potential profits upon completion.If this sounds like an opportunity you would be interested in, I would love to discuss further and provide additional details on how we can collaborate.Looking forward to connecting soon.