I have a property manager actually do the showings, but any issues like plumber , electrical is a phone call away.The only challenge is it's a commercial loan, which requires more down, higher rates and shorter terms. 

Car loans eating up a huge amount of income no. 

Hey Mary,Buy a house as a primary residence with 3% or 3.5% down using a conventional or FHA loan and then get a roommate to cover part of the payment. 

Yes there are loans specifically for STRs if you need any help with that let me know.

If a loan gets called, my end buyer is totally screwed because I don't have the resources to pay the bank or refinance.

If I take over this loan through a subto purchase, does the tax exemption remain in place or would I have to start paying taxes?

We specialize in DSCR loans and would be happy to jump on a call to discuss further.Bobby

Let me here what you would do with the scenario.Purchase Price:40KRehab: 40KTotal Loan From Lender after Rehab: 80KARV: 130KFair Market Rent: 1,200 Mo.If this was your very first purchase, with a goal of wanting to scale, and build a portfolio based around LTR, and Fix and Flips.

If you're a single mom with student loans, a car payment, and living paycheck-to-paycheck, then $20,000 would be devastating and a reserve is critical.

Typically, you will see loan products that are marketed up to 75%, MAYBE 80% LTV.