@Raj G.Default Interest rate is a different rate than the original loan terms because the borrower didn’t repay the loan per the loan terms.

We recently found a condo willing to do owner financing at a 4% interest rate with a purchase price of $500,000.

If you can't do this, you can inflate the rent to include utility charges or just do flat-rate billing. 

That being said, it's tough to get over the relatively high rate of return for STRs when you are comparing them to LTR. 

This $500,000 property has a 30 year mortgage with 25 year left at a 3% interest rate.

I think a reasonably priced market that's growing and has a diversified economy with relatively low crime and good schools.

Then look on VRBO and Airbnb and guesstimate rates and occupancy for your area on comparable properties.Put all this in a spreadsheet and let it do the math.

Add a short statement at the end outlining whatever you are changing, have all parties date and sign, and you are done.Example: "Landlord and Tenant agree to extend this lease for an additional 12 months with a new termination date of 12/31/2025 and a new rent rate of $1,950.00 per month."

New construction may be an option, many builders are offering rate buy downs and closing cost assistance and then you get quicker appreciation when they continue to build out the community.

I'm looking for a PM group that has a reasonable monthly rate, manages tenant selection well, addresses property issues with quality, and conscientiously and actively turns properties when vacant.