I believe you are talking about a Regulation A filing.

You can probably find information on-line (or by contacting HUD) regarding their rules and regulations.

Greatest con is the very pro-tenant regulations that translate to risk that do not justify the cap rates for my preference.

Job wise I feel they are pretty stable: High credit person (sister) is a dispatcher for plumbing company, Mid (friend) is IT technician and low (brother) works for Primerica which is commission based.

I would have had to frame new kitchen, bathroom and frame the whole second level with new roof, repair foundation all new electric plumbing etc.

I run and operate a plumbing and heating business, and my wife is in e business.

Yet looking at major hotel chains like Marriott and Hilton you would never know it: online booking for the month of May 2020 continues to be available and fully usable, with only a small a disclaimer (if any) to check local regulations.

All on the Outer Banks of North Carolina which is a great regional drive to destination with a long established history of short term rentals as tourism is our main income producer for our communities with “relaxed “ STR rules and regulations.

Here’s a breakdown of what I did and the costs: Labor. 29,176.53   - New Railing and Spindles– Exterior of House- Remove damaged flooring- Refinish and Stain Hardwood Flooring- Install Vinyl Plank Flooring on Floor 2- Install ceramic tile flooring in baths and Unit #1 kitchen- Paint Interior (Walls / Ceiling / Trim)- Install New Kitchen Cabinets Unit #1- Paint Kitchen Cabinets Unit #2- Subway tile kitchen backsplash and Unit #1 shower- New Plumbing throughout house toilets / sinks / garbage disposals / tubs / faucets- Install new light fixtures and recess lighting in kitchens- New doorknobs and hinges throughout- Replace electrical outlets and switches Materials - 2 Apts (Home Depot)...............$8,201.93Stainless Steel Appliances – 2 Apts (Lowes)....$3,300.00Quartz Counters – 2 Apts ............. $1,800.00Electrical repair / rewiring ............ $2,696.20Replace hot water heater................ $1,025.00Install Central Air Conditioning and upgrade heat........ $9,000.00TOTAL............... $55,199.69Gross Rents: $2,125.

There is also a smaller separated cottage house (1/1) in the back of the property.The public records classify the third room of the main house as storage and the back cottage as enclosure with plumbing.