Heck- this legislative session, the state just passed a law stating that no city can pass any laws regarding rent controls or limiting the fees that a landlord can charge.

I plan to self manage, but it's good knowing a middle tier management option between self managed and full property management - without a huge PITA factor :)

We knew we couldn't do anything until his lease expired but once we had a conversation with him, he kind of suggested he wanted to move out sooner, which was great news for us, and we said we wouldn't charge him fees if he broke the lease earlier.

But they are phasing out the fees to renew that license, and I believe that in 2014 there is no fee for this!

This type of financing will typically look very different and more like a traditional commercial real estate loan.That means a DSCR calculated based on a full NOI and expense load (so inclusive of vacancy loss estimates, credit loss estimates, repairs and maintenance, utilities, management fees and more – in addition to the property taxes and insurance expense that are the only expenses factored in on traditional residential style DSCR loan financing).Additionally, the DSCR minimums are generally going to be higher (typically up to 1.25x), the loan to value ratios lower (higher down payments) and underwrite more sophisticated (which makes sense considering the size and scope of the property).Many multifamily investors for properties of this size (such as more than 11 units) can syndicate capital and have more sophisticated financial and entity structures – its definitely a different world once you get up here in unit count.In Conclusion – when you are looking to invest in multifamily real estate and finance your investment – make sure you have the unit count in mind before you start shopping – the unit range can have a huge effect on your options.

Target would be to have maximal leverage (ROE), but with the constraint that it has to be cash-flow positive (factoring in mortgage costs).

The other factor is that money for how long they have been a tenant needs to be in an interest bearing account so you will have to account for that...

Lastly, ask about loan costs/lender fees so that you are aware of the financials of the entire deal.

We've targeted STRs in other areas based on factors like ensuites in every room vs the actual number of bedrooms, so size wise is less of a factor in our search. (2-4 beds, would be the range). 

I think it is ultimately up to you with this decision, because of overall goals and what you're investing philosophy is.Some factors to consider, what would you be saving if you just rented?