Defeats the purpose of BRRRR investing. 

I acknowledge that "vacation home" is not the same as an investment property, but they did consider cap rates as part of their calculations: https://vermontbiz.com/news/20...In case the above link doesn't work:VermontBiz.com Most buyers in our market, however, do not purchase for pure investment purposes, as better cash flow can be derived in any number of other markets - as Mark pointed out in his reply.

For illustration purposes, I sent him $10,000 for a tenant turnover + other miscellaneous work, and he sent me $20K for rents, net of property management fees.

Hello, I am looking to get started in REI but I don’t have the capital needed to buy properties for rental purposes.

Did you find anything else for your purposes?  

I wrote the above for informational purposes.

Non-Owner Business purpose Cash-out refi or just Refi.Arm, 30 years R/T, and IO.

For purposes of this subsection, the primary resident shall mean either (i) the owner of the dwelling unit that is entitled to a homestead exclusion pursuant to Code § 19-1301.1; or (ii) a renter (a) who lives in the dwelling unit more than half of the year and (b) who is authorized by the owner to provide limited lodging.

I would not touch the deposit for this purpose.

However; you didn't mention the size of the lot, therefore; the fact that it's zoned R3 doesn't necessarily mean that it works for that purpose.