In San Diego at the current rates for a purchase loan (which has better rates than an ADU additions) at high LTV, I show 1% does not cash flow on a sustained basis.  

Default rate - as you scale you will have a 10% default rate on loans.

Everyone’s got the same problem: STR oversaturationPrices are high in most markets and if/when you do buy, your competition is fierce thus pushing down nightly rates and occupancy rates in almost every worthwhile marketGood luck fixing that! 

To further boost occupancy and revenue, consider revisiting a dynamic pricing tool like PriceLabs, as it works best with more time and data to adjust rates competitively.

Most of the buyers are just regular folks looking for a home, so they are not at all thinking about cap rates. 

Some lenders offer discounts to return borrowers so maybe look into both flip and DSCR rates when finding a lender. 

While rates can be higher, they are efficient for temporary needs.2.

No, it's not cheaper because you get discounts through these companies.   

These marketers would have the novice investor believe that the narrow focused “education” they provide combined with the “holy grail” formula (wholesaling, subject to, flipping, lease option, discounted note purchase, etc.) is most, if not all, anyone needs to become “independent” and successful, usually by month 12.

I have the ability to find properties that all in costs including rehab and purchase would only be 70 to 80% or ARV on properties. due to this I have been trying to find lenders that allow for less down and rehab coverage since the properties are so discounted.