Hey @Josh H. it's higher risk and def also higher reward.

You are definitely taking all the risk when buying from these sellers, especially if you only rely on the inflated ARV's etc that they provide. 

As the risk goes up the cost of money goes up.  

This will reduce your risk and cash invested and if something goes wrong you wont be bled dry with never ending repairs.

It's all about risk in the event of a lawsuit, which can also usually be covered by insurance.- If you decide to have an LLC for each property, creating a Management LLC that all the other LLCs "hire" to run their books, will allow you to only require a bank accont for the Management LLC.2) You may not be able to do a Trust.

An emergency fund needs to be liquid, and immediately available to you in addition to being low risk and protecting principle. 

Looking for a turn around scanrio is an ego pleaser, makes for a great story if it works, but high risk it will never pan out the way you thought.

@Brian Rocha It’s clear why most lenders insist on including rehab funds in the loan, and all of our partner banks follow this practice for fix-and-flip loans to minimize risk and meet securitization standards.

If they work independently, set their schedule, and use their resources, they might qualify as a 1099 contractor, but misclassification risks IRS penalties.Wages for W-2 employees and payments to 1099 contractors are both deductible business expenses, but compliance is key.This post does not create a CPA-Client relationship.

I also am very interested in purchasing more STRs, and this is a really low risk way to see if I'm up for it (we have a 2.9% interest rate on our mortgage).My biggest concern is an ongoing plumbing issue we have had.