Now my question is; is ~$2450 rent enough to cover mortgage of $320,000?

@Anthony Miller here's something to think about that's not covered in any books!

I am based out of the Santa Rosa Century 21 Office but I cover all of Sonoma County and beyond.My very first purchase was a Duplex where I lived in one unit and rented out the other for rental income.

HOA is currently $172/month, with and additional $44 for club fees, covering club amenities, including a gym, boat lift, a restaurant etc. 

While real estate values do rise over time, if you can't cover your bills during the downturns to get you into better times to sell, you are likely to lose money.  

How will the partnership cash flow cover the HELOC payments if interest rates increase?

Covering this with my salary is relatively comfortable.  

Thanks they didnt say anything about STR it would be awfulI was wondering how they make money now i knowI dont think the $10K would even cover damage!

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

Another note on construction cost, going vertical is very expensive now and would require have a great connect with a developer and a builder in the area.See what rents are in the area and run the numbers to ensure the rents will cover your costs and give you a solid return—using the 1% rule can help.