@Clare Pitcher we do 12+ month leases to avoid vacancies Nov-Feb.If we take over an occupied property, evict or have tenancy-abandon a property, we first let the owner know finding a tenant will take longer than "normal".This opens up owners to understanding they may need to:1) Offer 3D tour and floor plans to stand out2) Price more aggressively or be prepared for aggressive price reductions3) Offer MoveIn Specials:- NOTE: we do NOT recommend offering a month of free rent that can be used at MoveIn.

Wait until the move-out date and confirm she's gone, then handle turnover like normal.

If you can't qualify, DSCRs are a good option but I normally advise to stick with a 3-year prepay (or less, depending on pricing).

$77,000 earnings on a $190,000 investment is unheard of in real estate, but quite normal for a well running business.New RE investors are always after cash flow and CoC return.

Certainly not appropriate per the SEC standards Don mentioned.I'm not super versed in this area, but is this clause to convert investments to equity normal? 

Just looking at their website,  there is no useful or helpful information that a sophisticated investor would normally require (to even give them a chance of being considered).

You'll then see that delinquency rates are:- At their lowest point since 2006- Historically on the low side of normal - On an overall downward trend for the past 4 yearsIn fact, excluding the artificially propped-up mortgage market of 2004-2006 during which delinquency rates were slightly lower than they are today, bottoming out at 1.41% in 2005, there are fewer mortgage delinquencies today than at any time in the past 33 years.By the way, when these scant 1.73% of homeowners become delinquent on their mortgages, they overwhelmingly have the equity to be able to sell the home at a gain if needed.

If they are legit and you don’t have any other offers then I’d have the conversation with them but I’d want a higher than normal down payment (ideally 50% or at least more than the normal 20%), a higher than normal interest rate (at least a point above the prevailing rate so like 9-10% right now, but you can structure it as interest-only payments so their monthly payment is still lower than conventional), amortized over 30 but with a balloon in 3-5 years, something like that.

That sounds pretty normal for the area.

Normally an annual STR revenue at 20% of purchase price would provide solid COC.