This translates into increased costs and risks for the owner-manager.That said, keep checking it out and underwriting the deal, it sounds like there is potential there. 

@Jaquon Miller, while there are certainly some lessons that are learned from fix and flips and BRRRR that may translate into syndications, I would say it is not totally the same.Syndications require a far more in-depth understanding of investment finance than the typical BRRR or Fix and Flip.  

100/sqft on a full gut sounds about right - This includes new roof, siding, windowns, electrical, framing, etc - basically everything besides foundation and structureFor a more cosmetic rehab with minimal expenses and alterations to electrical, plumbing, etc you are looking close to 50-60sqftFeel free to reach out anytime and I'd be happy to see your numbers and the project. 

I filed a formal complaint with the New Mexico Realtors Association and now there is admission of false/altered docs from the sellers.

They made the money via the business formation and the success of it.They didn't make the money by buying the equity shares & seeing it grow, they were the equity.That translates to all forms of investing and capitalization in really any field.

But, that leaves the mortgage in your name whcih I see as a layman leading you into issues with co-mingling and alter-ego...So, learn how to properly operate the LLC to maintain your corporate veil.One common loan being used is dscr. 

This is very true but somewhere down the line a good amount of our hard earned tax dollars is lost in translation.

That would translate to roughly $5,000/yr, and I would then save that full amount into the solo 401K.Thanks in advance!

Roughly it translates to about $50k Net after deducting all expenses.Conclusion: you save some money in the first 3 years, but at a cost of spending a lot of time to manage the STR, not to mention any start-up time to buy and furnish and launch the STR. 

The potential 2.5% commission that might have been directed to the buyer's side is now potentially off the table.This change prompts a critical question for unrepresented buyers: how does this alter your strategic advantage when approaching a sale without an agent?