As Vince said it is a quick guideline and won't work in most places with current interest rates and house prices. 

While I have a fantastic rate, the co-owner's giving me the option to refinance or he'll force a sale.

Also I've heard of some DSCR loans that are not too far off from conventional rates.  

I have heard good things about Ohio, Indiana, etc.5 - Due to high interest rates flipping has become highly risky and most businesses have dried up.6 - Co-living and Assisted living seems to be popular right now.So - really depends on your market, your strategy, and your timeline.

Even though there is low inventory, interest rates are high, and many properties don't cash flow, look harder there are always deals, you just need to find/make them.

Hi Nate - It'd be worth asking the lender for a detailed breakdown of closing costs for this program, as well as an estimate of the interest rate you'd get with today's rates (they'll probably need to pull your credit to do this).

Based on what you've told us, your rate should be at prime (7.5%), unless you are over 80% LTV, then it would be prime +1.Jeff

Check their occupancy, nightly rate and amenities.

You could also get a line of credit for about $150k (you should be able to borrow 75% of the value.)The reason I suggest this is…1) you save $40-$60k in selling costs. 2) you have a lower blended interest rate (2/3rds at 3.25% and 1/3rd at 7 or 8% instead of the whole $500k at 7 or 8%) saving you another $1k/mo in interest. 3) you only pay interest on that $150k when you actually use it, not from day 1  Unless you hate this property, or want to buy something you can’t afford without selling, that would be my plan.

I'd wait this one out until rates lower and you can refi and learn from it to buy better the next time around.