This particular investor used to be my middle school English teacher, and wanted to do a deal that would pay him every month so that he knew he and his family would be taken care of even if something were to happen to him.

The seller is paying 20k in mortgage interest, given the current interest rates I would need to 45kish in mortgage interest for the said STR.

There are plenty of lenders that don't require experience to lend, but leverage/rate might be altered a bit.

@Brett Deas,there are several factors here:First, if your investor base is used to specific assets, where they have full(ish) visibility of the asset, convincing them to invest in a blind pool fund is hard.Second, it looks like you graduated high school a couple years ago, so presumably your track record is only 2 yrs old.  

I keep wondering about insurance, vacancy rates, if tenant selection is a bigger/ different factor, terms of the tenancy and differences in opex and capex?

It can be challenging for 1-4 units depending on the property characteristics, your loss history/other rating factors, and location.

In some markets you won’t get the higher booking rates and occupancy numbers without a pool (Florida and Arizona come to mind). 

Hey Anne, I'd suggest you do some research on the MTR rental rates and vacancy rates in your target area and understand the costs involved in renovations, financing and property management.

Many homeowners locked in mortgage rates at historically low levels, between 2.5% and 3%, providing a golden opportunity for those refinancing or purchasing homes at that time.

Since there is a lack of regulation, many lenders may change the final settlement statement once all is said and done, which can result in a higher rate, more fees, and/or a reduced LTV.