It's been less of an issue with my first two properties which cashflow at 3% interest rates, but the latest unit is cash flow negative on a 7% interest rate.

These details and the creative aspect of an STR seem like they will be an exciting avenue. 

Hey @Dan ErmolovichSorry to hear you’re facing this challenge...evictions are one of the tougher aspects of real estate investing, and being out of state adds to the difficulty.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

yes, but it's much more difficult. you're just not going to cash flow after you refinance - you might even be slightly negative. 

I think the most challenging aspect would be assembling a reliable team and ensuring everything runs smoothly from a distance.

It’s a business oriented mentorship but the man I was paired with was well versed in all aspects of real estate investing and development.

The old adage is true in real estate as other aspects of life - if it seems to good to be true it probably is. 

I would try to verify the negative information and if in fact true, then it would be a pass for me.

I'm afraid if you don't get a handle on it or let them go with a referral it could be detrimental to your business and could quite possibly lead to negative google reviews.