I don't understand how so many miss the most basic function of STR that it is Hospitality, and ignore the very simple, long founded and known principles of such.

Finally he does wire me a payment but there is no accounting of which notes it is for, what is principle, what is interest, or anything like that so I start asking for that info.

If that is the best return you can get on $100K, then do so.You do a little worse because you end up with less principle paydown when recasting (the opposite is true if you are simply prepaying. 

Another part of our strategy is to invest with someone at a local level. which meant we became local through our partner.We will make offers on properties sight unseen, but we will not close sight unseen. 

The numbers usually just don't work after you factor in principle, interest, taxes, property insurance, as well as a maintenance reserve unless you somehow found a steal of a deal on the purchase price.A refi is simply a new loan where you are keeping your same house.  

If the answer to all three is Yes, I buy.And let life unfold.I have NO IDEA what the ultimate return will be….NONE….And neither does any other investor if they are honest…..most crystal balls I find are broken.But if one acquires the property is a solid long term manner based on fundamental investing principles and is never forced to sell…History indicates the long term trajectory of price and rents are up.In my experience, real estate follows cycles……. 6 or 7 years of a bull market, 1 or 2 years down (though the up is always larger than the down), 1 or 2 years of flat which then sets the floor for the next run up.

Also your E&O insurance most likely does not cover you when you are a principle to the transaction.

We buy houses all the time sight unseen!

One thing I didn't do which I should have done before putting in offers in 2023 was to talk to very knowledgeable property management companies (referred to me by other investors), which I did after I closed on 2 homes, sight unseen.

(Minus the small percent of the payments they’ve made that’s been considered capital gains.)My understanding is the 60 payments they make will be split up in to interest (regular taxes), capital gains (15% usually), and principle pay down (non-taxable.).