It now becomes an expense with no offsetting income.now for late fees again all business models are different, I don’t think a company nor should an investor set up their business model to rely on late fees as income.

They can be difficult to find, but once you have a local lender that understands your business model and types of deals they will likely be able to fund most of your future deals as well. 

So you can go the California model and hang on when it stagnates not making much in NOI. 

. - I have 6 coaching clients who I have helped get properties using the BRRRLO Model so far.Increase cash flow by another 5k this year. - I haven’t done a full accounting yet but with the cash flow from the newly purchased properties, the purchase of the new mobile home parks, the refinances, and the debt pay down from the cash out refinances, I believe we are between 3k and 5k increase for the year so far.One of the things that I have done to pivot from the COVID pandemic was I slowed buying in order to accumulate more in reserves.

It's easier to explain the business model to someone who already has experience with cash flow real estate investing. 

You could add the rent-by-the-room model as a third option, as these clients of our did. 

If you are trying to find out what's owed to base your bidding strategy, i think that would be a flawed model.

Be weary of guarantees on the STR loans, even though it's a tried and true business model, lenders will be conservative since these loans aren't as desirable on the MBS markets. 

I bought my first multi-family with this model a few months ago and I do recommend it.  

I have not seen a good answer yet because appraisers have not really adjusted to this new real estate model so there is no standard way to evaluate and not enough comps in the marketplace yet.Anyway, let me know if you find more info on the topic because I am very interested.