Is this something you thought about? 

I am also out of state and he is local.We likely will be buying off the MLS and trying to identify something below market value and negotiate a deal.He will manage any cosmetic rehabs, furnishing and then ongoing management of the listing. 

What bank wouldn’t finance something with 50% equity left in it?

Even something simple like an InstaPot that makes it easier to make meals can improve the booking. 

That speaks for something!!!  

Meaning one year, or for 10 years you may not have the leaky basement problem, but then it will pop up again for two years and then go away or something like that. 

I pay water on a few of my properties and you can charge some of it back, but I would assume that this is something that you will not be able to recover in your underwriting. 

Or is it something that guests won't appreciate or care about? 

If you're penciling it on, on your buy that's a bit optimistic and you'll have to likely understand your house value would then appreciate re-creating a re-finance loan with a new & higher tax basis and insurance which would likely not make it as affordable as you are penciling in.My best advice is to look to buy a value-add, something on the MLS for longer days or off-market.

If you've owned it for at least a year, you can go the conventional route or something like a DSCR loan.