We will see these more frequently on variable rate debt with near term maturity datesOf course this will put the initial investors behind the new debt on the capital stack but it’s really just adding more buckets to shovel water out of a sinking boat.

Quote from @Lindsay Tucker: Renting by room for 4 different tenants who don't know each other invites extra issues, headaches, in-fighting, and additional variables you won't likely have to face if you have one lease for all 4 rooms.

The con of this though is that the monthly payment is much higher, thus reducing my cash flow significantly (if anything).Since I am somewhat new to real estate, I know there are more variables to consider like appreciation, or refinancing or HELOC down the road.

A lot of variables to give you a solid answer - but if you can financially weather a little turbulence I would stick to the the original STR/MTR plan, as long as there are STR comps that support this decision.

Hi MelanieSome of these questions depend on some other variables, but I will do my best to answer in generalities.1.

Were looking at using a Heloc as  a down payment but its a variable 10.25% APR for 5 years  or 9.87% for 10 years and we have to pull 100K on first draw. of course we can put back what we don't use.

High paying local jobs.Monthly cash flow: $306 /moIncome:  $2,250 /moExpenses:  $1,943 /moCoC ROI: 2.69%5-year annualized return 4.91%   Mortgage payment $1,394.53Rental income: $2,250/mo Expenses: $1,943Loan detailsTotal cash needed $136,739Purchase price$ 336,990Loan amount $206,990Loan term 30 yearsInterest rate 7.1%Monthly expense breakdownTotal expenses $1,943Mortgage $1,395Taxes $280Insurance $47Variable expenses  $180Fixed expenses $42Monthly Fixed expenses: $42 electricity $0gas $0water & sewer $0hoa fees $42garbage$ 0Other$ 0Monthly Variable expenses $180Vacancy $180Maintenance $0 (new construction)CapEx $0 (new construction)Management fees $0 (self manage)ReturnsNOI$ 20,412CoC ROI 2.69%Pro forma cap 6.06%Purchase cap 6.06% 

Rather I'm looking for a mature STR market with enough supply that makes it worthwhile for my co-hosting business to bring our services.One variable I'm digging into is how many STRs are self-managed vs managed by a PM or co-host.

Then you should also understand that that price is variable.

Additionally, I’m not keen on HELOCs due to their variable interest rates, if I understand them correctly.