Hi Folks, evaluating some Out of state STR options, some markets have primary residence requirements.

Update from one of our bankers.  60,000 population  town, multi locations state wide, $20mm Fed lending cap.1. 

Just sent this over to a client, in place NOI yields a ~9% cap rate on this park, which of course feeds into making 75% LTV doable. All are at less than 1.5 points. Blacking out just enough so that the exact property ...

However, converting these into desirable, owner-occupied homes could capture untapped market segments, particularly as economic conditions improve.Age Distribution and Market DemandDiverse Age Groups: The presence of young adults and an aging population suggests varied housing needs—from starter homes to downsizing options.

In a different market, there may be lots of demand for individual rooms and little demand for the whole home, making rent by room the better option.

Which option is going to better fit your goals?

Doing a renovation now and have the option to do x2 2bed 2 bat units or x3-x4 1 bed 1 bath units.

The house is in a pretty great neighborhood with excellent schools and options to commute to most parts of the bay area and I am confident that I will be able to rent it out soon. 

So, a decent deal is likely to get better over the long run. given the high amount of cash needed for brrrr do you feel it would be better to start with a long term rental as an initial investment that has less risk involved The money needed to complete a BRRRR varies WIDELY from market to market.

@Roger D Jones curious, do you charge for any of those options/services?