I am looking into my STR options but from what I have learned this is a overflowing market in the area and the vacancy's are increasing so I may look into mid term and long term only.

Depending on what policy you have going forward on this, you may choose to increase their deposit amount.

@Scott VaethIf you live in part of the home and rent out rooms, you might be able to keep the lower 4% owner-occupied rate.Instead of a long-term rental that barely covers half the mortgage, could you do a rent-by-the-room model or target traveling professionals to increase cash flow?

Also keep in mind as time goes on typically your yield will increase because of the rent growth. 

The only additional thing that needs to happen is make sure appraiser makes note of why the value increase in as is vs previous purchase price.

They have been historically reliable over the last few years but I am hearing some rumblings of reduced leverage, slight increase to rate, or some kind of minor tweak to DSCR lending with some programs.Happy to jump on a call if you have any questions or concerns.Good luck!

Properties like the Michigan complex offer a unique entry point, combining cash flow and significant upside potential.Immediate Cash FlowThis particular property is projected to deliver 6% annual cash flow from day one, already exceeding the yield of Treasuries.Value-Add RenovationsThe property includes hundreds of units that can be upgraded to Class A finishes, justifying rent increases.

Our monthly mortgage payment would increase, but we would still break even.Both of our car loans have an interest rate of 4.5%.

Plus lime is increasing in usage.Downsides.  

The shorter the prepayment term has an impact on increasing the rate.4.