**Financing Risks:** High-interest rates on pre-construction loans can impact your overall return, especially with rising cost of capital.

Hey Bp,I have an adjustable rate heloc that started out with a super low interest rate when we first got it.

It will increase tax rates on STRs from residential to commercial, so from 6% to 28%. 

Your federal income tax rate is 35%.

@Imdhadur RahmanBest I’ve seen is 15% down, and you pay more in rate as a result of the down payment.

It's crucial to look beyond just the lowest rate offered on a verbal or preliminary basis.

The only way to know for sure is to try different ones and track your response/deal rates. 

Overview:Address: 3960 Pleasant Shade Dr, Atlanta GA 30340 (Have owned for since Nov 2016 and depreciating)Details: 3 bed 2.5 bath 1,847 square feet (None of the photos online are current)Principal Owed: $232,000Mortgage Rate: 3.375%Monthly Payment: $2,010 + $250 for landscaping and pest controlCurrent Rent $2,450 a monthProjected New Rent: $2,750-$3,000 a monthPotential sales price $450-500k. 

Given you have such a low rate on your mortgage, you may be able to get some cash flow if you rent it out.

Without knowing much about the project you're looking at, that's where I'd look in the modelThank you, still going through with fake numbers and entry/exit cap rates to make sure the formulas work correctly.