Families forced to uproot their lives, children experiencing the trauma of eviction, and homelessness rates breaking records year after year.

These LOCs are typically interest only and adjustable rate, which of course is planned for, again with the equity and the cash flow of the investment, it shouldnt be a problem to at the very least break even, even in the worst of scenarios.

@Brandon Croucier is giving you solid info on finding an experienced and honest mortgage broker who can shop your exact scenario both ways, with the rehab and without and break down the benefits of each with all fees so you can see an apples to apples comparison. 

Appreciate you taking the time to break it down for me—it’s definitely helping me figure out my next steps!

On the other hand, if you go for lower down payments, you can acquire properties faster, starting to benefit from appreciation, depreciation, and tax breaks sooner.

Other risks, the contractor walking off the job, a storm hitting and delaying the project for weeks, someone breaking into the home and stealing stuff (which happened just the other day to a client of mine), a squatter, or drunk driver driving into the house (happened a lot at my old job as a firefighter lol).

The property manager can make or break you, it has to be a PM that is working in that space and is comfortable there.I agree with earlier comments to look in the front and back yards to see how many old cars, abandoned junk, or treasures that aren't treasures are piling up. 

Id be happy to break-even with the rental income if I get all of my invested capital back.

We like the short-term rental idea because we could stay at the property ourselves when we want - summer break, spring/winter breaks, etc.Our budget will be right around $1M or less ideally, and we would like a short distance to the ocean.How likely is it that we could find a property as described above and have it cover or come close to covering the mortgage? 

If so, you know how the neighborhoods break and that the appreciation trajectory can be diametrically opposed within a block.