Despite lower efficiency, it seems I will be going with the central AC.

However, the loans we get for this type of a transaction have to go through the banks/lenders in that country. 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Most properties are transacted without being on a foreclosure list LOL  :)Hope that helps. 

Many investors from California are investing in the mid-west because of the yearly cash returns making more sense in these lower priced markets.

The institionalized players typically have 100-200 BPS lower rates than standard hard money lending players but they're clunky and have lots of requirements its almost like the instituional HML should be called "hybrid hard money or hybrid bridge money," because of all these requirements.When we're working with those instutionalized players we usually have to do almost as much work as a conventional loan (1-4 fannie, not quite but almost as much).If you'd like to learn more about the different options or get a sounding board on what options are out there feel free to reach out and we can talk shop.

With the hope of higher rents and slightly lower rates for a refinance before the cash flow gets too negative.

Also, let's remember the 1% rule was created when interest rates were lower.

But, anyway just look at how you could/would perform any transactions. 

We are always fully booked for around $600 per night in July/August.The problem is:  We need more bookings in the spring and fall when demand is lower.