The result is after a year when the tax accessor associates the proper property taxes with your property, there is a decent chance you could have payment shock and your monthly bill rises significant (until you pay off the escrow account balance that is also likely causing this). 

I think I'm also dealing with a little bit of price shock as I'm used to looking at properties in the $100k range where I can rehab it (I do a lot of the work myself) and force equity into the property and then cashflow a few hundred dollars.

I'm shocked at the difference (upwards) since we started this journey. 

STRs are popular in this city as they create significant amounts of jobs and revenue.I am shocked that this model is not more popular around the country.

It would even shock people without money problems, that's a $5400 a year hit... 

You’d be shocked by how little actual screening many PMC’s do!

However, rate would be prime + index + an additional +2% for the shock factor just to qualify, but you can draw the funds whenever you want and just pay the balance + interest vs cash out where you have to draw all the money after closing. 

However, rate would be prime + index + an additional +2% for the shock factor just to qualify, but you can draw the funds whenever you want vs cash out where you have to draw all the money after closing.

I have looked at other areas like Austin and Raleigh, NC and the numbers there are even more crazy plus the I was shocked to see the property taxes in places like Austin, freaking 5K property tax a year on a 230K OKish house.

Wow, i always shocked by those prices.