If the construction is 50% of the existing building value they will make you raise the house to current FEMA requirements.

Quote from @Dee R White: I'm out of debt, don't really plan on using my card much except for emergencies but the recovering spendthrift and the riskier investor sides of me - are curious if I should call the company back and ask for them to raise it back as it might affect my credit score. 

I have just received the same callThis a legitimate business model for a STR company, but the website raised a lot of red flags and I would not feel comfortable doing business with them.

However, there’s one aspect of the website that’s raising a bit of concern for me.I live in Santa Barbara, CA, and from my experience, the median home price here is generally at least $1.5 million, and in most cases, I rarely see anything priced under $1 million.

If you're going to do that and want cash flow, you'll very likely need to at least make some cosmetic improvements to the units to raise the rents and then manage efficiently.

Typically  issues are raised when the exterior is not kept up with / parking on grass / garbage in neighborhoods where everyone takes pretty good care of their homes.If you keep it clean and run a tight ship, you should be okay most of the time.

In this deal, the borrower soon defaulted and instead of foreclosing Capella raised another $1M from investors.

Paul has in the past enacted restrictions on raising rents.

A good example to reduce your potential costs without raising rents is to have the tenant agree to handle all repairs under a certain amount.

so it turned into an accidental flip.i have one i did in 2021-2022 that broke even when i finished, but now cash flows well because i've been able to raise the rent a few times.happy to help further