As Vince said it is a quick guideline and won't work in most places with current interest rates and house prices. 

I wanted to drop this review so that future clients are aware of what they are getting into.

Frequent hail storms pushing insurance rates up in that market. 

If I leave this amount in Sch-E, I get taxed at ordinary income tax rate at Federal and State level, which along with my regular W2 income can be substantial.

Credit score and loan size can also affect what rate you may find. 

Check their occupancy, nightly rate and amenities.

I've seen many investors get burned because they failed to understand their hard money loan terms/rates, even if they did acquire what should have been a home run deal. 

It worked out fine, though each time I got a little less than advertised interest rate (about 9% vs 10%) and I had to send a reminder email to to get my money back, but I did get it back.I ask about others' experience, because I'm still not 100% sure it's not a ponzi. 

With 56% appreciation rates in less than 10 years, even the stock market can't beat North Carolina!

I financed this deal on a 30yr conventional loan and I put 11,000 down with a 6.625% interest rate.