Hello there community, in the recent days I have been teasing the idea of house hacking if I decide to move in the future  in SLC ( love skiing and the nature). 

Their most significant risk is an injury lawsuit that will either be dismissed or settled out of court by their insurance provider for well below the liability limits.If a mom-and-pop investor obeys the law and treats their tenants honestly, they'll never have to worry about asset protection beyond ordinary insurance and a small reserve. 

Given your focus on equity and scaling for future development, targeting properties where you can force appreciation through value add renovations seems like a natural fit.

The HOA doesn't have the 10% minimum in their reserves account (savings account) and Freddie Mac won't lend on it. 

Ensure the STR’s projected income comfortably covers new debt, even with conservative occupancy rates, and maintain reserves for market changes or vacancies.

This isn’t just about bookkeeping—it’s about setting yourself up for sustainable growth.Many investors use a basic system with at least five accounts: one for income, one for operating expenses, one for taxes, one for marketing, and one for reserves.

You will generally get people who are more nomadic in nature. 

Further, we need to account for a $10k “reserve” for what will be repairs / maintenance as the property ages.  

I believe that the Federal Reserve is going to cut rates by 25-50 bps at it's September meeting (no emergency cut), but that 30-year fixed rate mortgage rates will rise to upper 6s low 7s around the same time, and Commercial borrowing rates, including for multifamily, will increase as well. 

However, understanding their requirements—such as down payment percentages, reserve requirements, and loan-to-value ratios—is key to getting approved.One of the biggest advantages of working with portfolio lenders is their ability to fund deals that traditional banks might pass on.