I ran a large wholesaling company for many years and we only used transactional funding.

-Creates a solid foundation for passive income, allowing you to reinvest future cash flow into other opportunities without as much financial risk.Cons:-Ties up a large amount of capital that could potentially be used to generate higher returns elsewhere (like another STR or other investments).

Quote from @Jaycee Greene: As long as you feel you can cover large capex, there's not much need to keep much cash in the account, though I would keep the SD in there, so it looks like you're not co-mingling funds. 

Hey @Jonathan Baptiste, so we are a bit different than some.We have a large house that can sleep 12 comfortably and we provide a lot of stuff.

A private investor will want to see a few successful deals before taking out large sums as a debt loan.

If the mortgage payment is fixed (so large part of expenses is fixed cost), the cash flow will increase as the rents increase.  

Sometimes 5 in the case of 9% LIHTC deals but all the way up to 15 as I’ve seen in 4% deals.  9% is competitive meaning there’s only a certain amount of projects awarded each year by your states HCR.  4% is not competitive and is usually more appropriate for large projects because 9% will get allocated to projects of smaller size so as to spread the benefit.  

Quote from @Kevin Brewster Brewster: @Ryan Kelly why the large spread between rent and prices?

We take the T12 roll it forward, we strip out anomalies and one-time expenses and then layer in base assumptions and any known large expenses that are planned for the next 12 months.

3 separate recent studies show it is currently cheaper to rent than own in virtually every large market and that it has never been more so than currently.