The trick is to stay strict on the formula, but once you find that right property (and you will if you keep looking), act on it quick. 

We have a 'strict' cancellation policy though. 

While Palm Springs does have an established STR market, the city runs a tight ship and imposes strict regulations and fees on hosts.

You might also qualify for the de minimis one that you mention since it is line item amounts 2,500 or less.I don't see this as strict adaptation, and nor would it be betterment or restoration.

There are definitely pros and cons to each so I figured I would just lay out a few benefits and personal thoughts: Small banks/brokerages:Pros:- Some regional knowledge of the market- Possibility of more creative lending guidelines with bank specific programs- Sometimes they have competitive rates for their areaCons: - weak balance sheet (more strict on some guidelines, no wiggle room, inability to be flexible or grant exceptions because they cannot afford to hold less than perfect loans)- Can't scale with clients to different markets- Usually limits exposure to individual investors (they don't want one investor to be too big of a portion of their balance sheet)- Lack of experience with multiple solutions (tend to have 2 or 3 loan products they sell and are too niche to provide tailored solutions)Large banks/brokerages:Pros:- Large compliance departments that understand individual market guidelines (typically each state has specific lending guidelines that augment the national baseline)- Ability to scale into multiple markets with same lender (licensed in many states)- Impossible for individual investors to "outgrow" a large bank's balance sheet (not concerned with one investor's concentration)- More lending solutions available for different scenarios- Often comparable or better rates given the game is volume basedCons:- Can be more difficult to get fast responses if the bank/brokerage does not have good follow up systems in place (or if the underwriting/processing staff gets overwhelmed)- Bad large banks can feel less like a relationship and more like a cog in a factory (less personal)Overall, I have worked from both and worked with both as a loan officer, branch manager, and as an investor/client myself. 

@Mary BurnsA 1031 exchange with a related party, such as purchasing property from your mother's estate, is allowed under IRS rules but comes with strict conditions.

I wanted to ask the the group if anyone has used alternate means of raising capital, strictly to buy another piece of investment property.I am new to the group and looking forward to any dialogue. 

I completed a 1031 exchange two years ago, but found the strict time limits made it difficult to find a good deal.

Now this is strictly how I do business.

I originally invested strictly as a vacation home, with home of price appreciation.