@Travis Boyd The quality of the neighborhood will affect the cap rate to be used.

To address this I took detailed pictures from beginning to end of my most recent flip, documenting that we did a thorough job using quality materials.   

(eg, if your lot is not the standard 25 x 125, but some other multiple where the width is actually skinnier than 25, and the lenghth is longer than 125, and you want to reduce side setback requirements, eg.) 

I wouldn't recommend a standard buy and hold rental because you'll have to pay both your HELOC and mortgage on the house. 

I'm particularly interested in what tactics people have implemented for sourcing quality deals (not the I need 100% financing bs)Would you:1.

To add to your argument I suppose the tax implications are better with RE too bc theres a capital gains tax ceiling of 20% vs standard tax rates for IRA withdrawals that are potentially much higher.

@Joe Gellenbeck Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

Our standard email with the bid states, please contact us to discuss & redline to your budget.The only thing we will require are health & safety repairs, to avoid a lawsuit.

However, if it is a purchase transaction, the deal can still get done, the deal would just need to qualify as a standard rental (lender won't know you are renting by room post-close).

And many hotels don't have 24 hour desks or 24 hour service.I don't get why all these newer regulations expect STRs to operate to standards that aren't even required of hotels with full-time staffs.