What is the rate of return (cash on cash) if you complete the rehab and rent it?  

You can pull out up to 80% of the value of the home, depending on credit score and property location.

Their success rate is over  90% I believe.

I would start there to make sure you can STR the place.It doesn't make any sense to rent a single room at a single room rate when there is a whole, empty house involved.

And the positive reports, ratings and accolades keep rolling in, i.e.: best places to retire, best places for families, etc. 

I'd build at least 3 units. the DSCR loans we underwrite get 1.6 debt coverage and because we build under 4 units they have so many exit strategies depending on which appraisal method goes for more. 

Year-to-date capital gains can sometimes be included, but this depends on the consistency and nature of the gains.

Also, what are you main reasons for looking to STF in Rockford, not knocking the area by any means but there is so much opportunity within the city limits where you're less likely to have extended vacancies.Short term rentals have taken a beating this year, while long term rentals have seen an uptick in what they can charge due to high home prices, and inflated interest rates.

A large part of this was necessity; interest rates of 12% - 18% IF available doesn’t leave much room for profit UNLESS property can be transacted with leverage at a lower rate.

The big drawback is that the interest rate on the Farmington condo would go way up with the refinance.