Oh yeah and the city inspector stopped by, tested some material pulled from your contractor's onsite dumpster, found asbestos, and slapped you with a $30k fine (true story).3. 

Did the sponsor grow and learn on thier own dime before rasing capital or did they test the waters with other peoples money. 

He's an intense guy with a brash vocabulary, but it perks up ears and gets his point across.  

As for a straight rental to Airbnb, there are some in those parts of Pigtown that passed the walk-by test yesterday. 

They are supposed to test that the heat works, not necessarily to know if the boiler is up to code (although most would probably catch it).So clearly if the heat doesn't work, then they were negligent.

I'd stay away from NPN's for passive income, as they can be management intensive, and really good portfolios are hard to find.

There are a couple of ways but the HELOC is probably the easiest option but you're in texas so most banks are only going to allow you to obtain up to 80% LTV on your primary home since its state law that limits this unlike other states.But 80% of 300k is 240k total loan amounts (about 93k give your current outstanding).There are community banks that can lend you up to 75-80% of the after improved value assuming the zoning on your parcel allows for the addition of this second storage unit home, in law unit, or second home on the property.The construction loan is more planning intensive and the funds come out in phases or "draws," in different flavors.

(I sent a message to you, but I'll also start a forum thread)We are already paying all utilities, so testing furnished units will be easy for us.Paying for a bulk internet for the units is near $20+- a month, cable is a little more than that.

I prefer a more conservative exit, particularly 5-10 years out.I typically review the stress test IRRs at varying exit caps and see if the asset will perform at more conservative exit caps (and many of these properties should be fine even at levels above +100 bps).I invest with a self storage operator who typically models exit caps that are 150 (sometimes 200) bps higher than current market cap rates...with an exit in six years; so, +25 bps per year rather than +10 bps. 

@Tyler Hull that deal passes my napkin test and something I would explore more.