What methods do other private money lenders use to pass along servicing fees to the investors involved?

There are more complicated strategies to maximize larger listings that involve having like multiple listings for same property and do individual room rentals when it is slower and then for larger length stays, larger groups, and more desirable dates you'd book the whole space, but I think its easier to just do two separate. 

As the risk goes up the cost of money goes up.  

I normally have one piece of advice for people just getting started, do not take on too much risk.  

But there's definitely risks that come with that as well.

Your plan to house hack a multifamily property in Indianapolis is a great strategy to start building equity and learning the ropes with manageable risk.

. :)We definitely want to invest in true vacation rentals as well but this will be a good learning process with not as much risk to start.  

Look up the default risk by credit score, this information is readily available online. 

In its current state:Current NOI: $79,058 (based on 80% occupancy).Current Cap Rate (at $1.25M): 6.32%, reflecting the property’s as-is performance.Value at a 7.5% Cap Rate (Market): $1.05M, based on current NOI.Given the renovations, vacancies, and risks tied to stabilizing the property, I’m considering offering $850K to reflect its current state and value-add potential.

At the risk of sounding too dramatic (but I know us on BP can get extreme to reach our goals), I am going to NOT get another residence.