A boutique hotel is a great investment, assuming your plan is the turn it into a STR hotel as well.

With comps ranging from $875K-$1M and your estimated build cost at $550K, the after-completion value gives you a significant equity cushion, making this project highly attractive to lenders.If you plan to hold and rent the property, you could refinance into a DSCR loan after construction, which bases lending on rental income rather than personal income.

Happy to chat and get a game plan in place for you or answer any other questions you might have.

Some gurus tell practicioners of sub-to to hide transaction from the lender by saying the lender doesn't care as long as the payments are being made.

If it’s an older property or has deferred maintenance, you might want to lean toward the higher end.When it comes to CapEx (capital expenditures), planning for major replacements like roofs, HVAC systems, and appliances is key.

She doesn't care that you manage the property, she cares how you manage it.

We plan to renovate it ourselves and turn it into a 1200sq ft 2/1 to STR.

Sounds like a great plan!

The compliance on these can be tricky, tread carefully or work with experienced funds.4) Death - Nothing is certain but death and taxes.

Assets identified in this study include:Standard windows and doorsInterior ceilings and wallsBasic plumbing and electrical systemsBuilding structural elementsBasic HVAC componentsThis engineering-based cost segregation study included the following methodology:Physical Inspection through a site visitDocumentation review including architectural plans, accounting records and construction documentsA cost analysis which utilizes engineering principles in order to allocate costs to their applicable asset classificationsCalculation of the depreciation schedule using MACRSAs a reminder, bonus depreciation started to phase out in 2023.