The 6 homes would be kept long term.

Has anyone referred to the terms of the lease?

Wanted to see if anyone has had any similar experiences with credit unions or smaller banks that originate their own loan. 

Looking at the reporting I do get, their fees are very high for what you get in terms of them managing the asset. 

A year of rent sounds great on the surface but I'm wondering why they wouldn't just pursue a normal year long (long term) rental...maybe they've been bad renters or have bad credit or low income.

The private investors form an LLC and get standard loan terms in a promissory note without equity or profit sharing. 

Evening, I am in the process of acquiring a short to mid term rental in the somewhat local vacation/ tourist destinations in my region.

Hi @Shiwei Qu, I'm originally from San Francisco myself and started investing in Ohio back in 2021 before moving to Columbus in 2022. 

I don't remember the exact term, but there is a category of insurance providers...

High paying local jobs.Monthly cash flow: $306 /moIncome:  $2,250 /moExpenses:  $1,943 /moCoC ROI: 2.69%5-year annualized return 4.91%   Mortgage payment $1,394.53Rental income: $2,250/mo Expenses: $1,943Loan detailsTotal cash needed $136,739Purchase price$ 336,990Loan amount $206,990Loan term 30 yearsInterest rate 7.1%Monthly expense breakdownTotal expenses $1,943Mortgage $1,395Taxes $280Insurance $47Variable expenses  $180Fixed expenses $42Monthly Fixed expenses: $42 electricity $0gas $0water & sewer $0hoa fees $42garbage$ 0Other$ 0Monthly Variable expenses $180Vacancy $180Maintenance $0 (new construction)CapEx $0 (new construction)Management fees $0 (self manage)ReturnsNOI$ 20,412CoC ROI 2.69%Pro forma cap 6.06%Purchase cap 6.06%