I personally like one sponsor who has been through multiple real estate cycles without losing any investor money, puts very large amounts of skin in the game, is conservatively leveraged and has a very good 1031 exchange program.

Many sellers will not accept this since they are in second position, and it is very risky since if you default (higher probability for investors with no money and/or no skin in the game), they will most likely be wiped out during a foreclosure.

“Josh, I feel you on this one—it’s a tough spot to be in, but let me tell you, these situations are where the real players in this game prove their mettle.

And answering your phone calls while watching the games does not turn your living room into a home office.

I'm always game to chat real estate.

That’s a game-changer when it comes to flipping profits.Your scenario reminds me of a client I worked with in San Diego who flipped a condo after living there for a couple of years.

You can only play games for so long.Chances are your next door neighbor is an IRS agent and turns you in when your tenants blocks their drive or some other random event disturbing your IRS neighbor.ADU catches fire and your insurance won't cover you, because it was an illegal and unpermitted structure.The city inspector told the last guy not to build or rent it, and is now pissed and wants to make an example of you and just red tags the whole property and no one can occupy for the next 1-2-3 years while you wait for a hearing.Then when you get the hearing, "staff" recommends you tear the whole structure down, and if you still want an ADU, you can apply for a permit and rebuild it.Your tenant quits paying rent and won't move out and you can't evict them, because there is no valid lease and they're just your "roommate".Probably a dozen other bad things can happen to you when you do stuff like this. 

If your game plan is to pay it off with prepaying all your money you absolutely need a HELOC however don't need to use.

To win the STR game, especially if you're a new entrant, the most important aspects are 1) Amenities2) Location3) Property type4) UniquenessAll are geared toward you standing out on Airbnb/VRBOHot tubs, fire pit, bowling alley, pools etc. or being in the best location in an area as well as being to host a large group are all things to help you win.

From what I’ve learned, focusing on properties with under-market rents can be a game-changer.