They will look at the ENTIRE cost of the project and calculate what they can offer you in loan amount.

FYI, most of my CFO clients borrow from HMLs that will lend up to 100% of their rehab costs. 

You could always add an electric furnace as a back up.

Yes, long-term rental clients sometimes don't want short-term rental next door to them, but you are the owner and landlord and set those expectations up front so it's on the table before they lease.

But I would be passing up on a big promotion that could lead to significant increase in income. 

Some people are growth-minded, which means they are willing to help for a low cost, or not much compensation knowing that the more conversations they have will lead to more clients.

Demand and occupancy appears strong, but the numbers don't add up for me to justify the effort of STR.

They’re upfront about timelines, costs, and any hiccups that might pop up.

Here are a few to watch out for:Property Condition: Most distressed properties need extensive repairs or renovations, which add to your initial investment.Competitive Market: With Phoenix's popularity among investors, competition for the best deals can be intense.Complex Deals: Foreclosures, auctions, or short sales are much more complicated compared to regular real estate transactions and usually require specialized knowledge.Tips to Successfully Navigate the MarketDo Your Research: Understand the local market conditions, including neighborhood trends, property values, and potential rental income.Build a Strong Network: Work with professionals who specialize in distressed properties-such as brokers, contractors, and legal experts-to make the best decisions.Assess Costs Carefully: Factor in the cost of repairs, holding costs, and any potential financing issues when evaluating a property’s profitability.Be Patient: Finding the right distressed property takes time.

Second thing would be to work with a contractor, this is great stuff to do since you know building a house, building material costs, and knowledge of right and wrong what to do.