I'd check local zoning ordinances to see what is permitted. 

thanks for the guidance @Kaushik Sarkar Since it's development it will take longer to get to the exit. 3 years could be right depending on the market, if the project requires entitlements, how long it takes for permits, no major utility obstacles, etc.

I'm looking for a GC to help me plan out a rehab and find any other underlying issues on the property.   

My guess is there are some STR owners or managers genuinely unaware their current pricing exceeds the price gouging thresholds until it is brought to their attention.]Will PriceLabs and other dynamic pricing tools- respond quickly and appropriately to these issues?

First off, pardon me if I misunderstand things given the limited amount of information I have, but there are 2 things right off the bat just from your description that could be contributing to your issue: 1) a 2nd floor unit - I had a similar setup for a duplex I owned in St.

The main issue I have is contemplating the baloon payment at the end of the 2nd year and refinancing the remainder with a bank...how can I compute that into calculating the IRR?

It's a very old house but newly renovated so there has been some maintenance issues because of the cold and poor insulation.

Finding borrowers won't be an issue, so I wouldn't worry about that piece, just making sure you have an agreement you are comfortable with and borrowers and properties you are comfortable with.

Joe I think one of the issues with rentals that need to be fed is how people have such a fixation on ROI and leverage . 

another issue it is about 18 months wait to get a Cabin started due to high demand for builder.