There is a lot of inventory in Jersey City, so compared to the rest of the state, there are opportunities there for good STR operators.

It just might be a different strategy involved.Cash flows through refinance or sale or operating cash flow is the same in my book.  

I know if I were to send an operating agreement to a lender that reads "LP member will receive return of their capital and 20% annualized return" they would not approve the loan.

Alt lenders will normally be higher on fees, rate and perhaps leverage at time of close but that's not always indicative of cash required to operate. 

This can be a great option if you don’t have the time or desire to deal with the day-to-day operations of managing a property.

A good rule of thumb is to keep 3-6 months of operating expenses in your rental account as a cushion.Once you’ve got that covered, you can start investing the excess.

Are you intentionally looking to outsource the management and day to day operations to a management company versus self-managing? 

A clear operating agreement from the start is key to keeping on the same page. 

In fact, there may be other home service opportunities with quicker growth potential worth considering.Additionally, be aware that in Texas you’ll need a broker’s license, not just a real estate license, to operate a property management business.

My point is even some experienced operators doing more extensive/sophisticated value adds are struggling in this market.