Many note funds take on debt from larger lenders or lines of credit against their assets.

Have you leveraged lines of credit, private lenders, portfolio loans, or other creative financing options? 

If they cant pay off the debt there homes will be sold, they will lose all equity, tarnished credit history and be homeless.

STR owners have historically been responsible for collecting and paying Hotel Occupancy Tax (HOT) directly to the city of San Antonio.

By your own admission, you are just paying interest on the $125k rehab loan. 

Ive owned property before so its not super scary to me, but I am far from experienced enough to see the intangibles that may cause problems down the line.

thanks for your time and helpInvestors Beware: I strongly advise against blindly trusting the data provided by turn-key investment providers.If you're considering investing with any turn key provider, verify every number line by line to avoid costly surprises.

In terms of using home equity, you would either have to take out the money using a Home Equity Line of Credit (HELOC) or you could do a cash-out refinance.

I agree with Nathan (don't forget to price running extra water, sewer and electrical lines).  

And when things don't go your way and each side has basically all their life savings on the line, the partners blame each other.