cost: 1,300/mrunway: 4 months = 6,800spread: 1900all in cash: 138,800Income a year: 22800/y ÷ all in cash = coccoc: 16.43%seller sees offer: 250,000sub-to 120,000sell fin: 500 w/ 0% intrest term: 13.33 yearsdown: 50,000

@Ryan DenmanIt sounds like a Reg A offering might work for you.https://www.investopedia.com/terms/r/regulationa.aspI would speak to a Securities Attorney before making any decisions.

But if you decide you are going to permit it, you need to have a contract drafted that protects you in case he is negligent or doesn't comply with the terms of the agreement.

I personally have closed on a handful of properties with owner carried financing and have negotiated terms for several million in private notes for clients.

Each option has its pros and cons that can impact your investment strategy and overall success.HELOC (Home Equity Line of Credit)Pros:Lower Interest Rates: HELOCs typically offer lower interest rates compared to hard money loans.Flexible Terms: You only pay interest on the amount you draw, providing flexibility in how much you borrow and when.Revolving Credit: As you pay down the principal, the available credit replenishes, allowing you to use it for multiple projects.Longer Repayment Periods: HELOCs often have longer repayment periods, which can make managing payments easier.Cons:Qualification Requirements: HELOCs require good credit and sufficient equity in your primary residence.Secured by Your Home: Your primary residence is collateral, which means a default could risk your home.Variable Interest Rates: HELOCs often have variable rates, which can increase over time.Hard Money LoanPros:Easier Qualification: Hard money lenders focus more on the property’s value and potential rather than your credit score.Speed of Funding: Hard money loans can be approved and funded quickly, which is beneficial in competitive markets.Flexible Use: These loans are designed for real estate investments, making them suitable for purchase and renovation costs.Cons:Higher Interest Rates: Hard money loans typically have higher interest rates and fees compared to HELOCs.Short-Term Loans: They usually come with short repayment terms (often 12-24 months), requiring a quick turnaround on your project.High Fees: Origination fees and other costs can add up, increasing your overall project expenses.For a BRRRR strategy, a HELOC might be the better option if you qualify and have sufficient equity in your primary residence.

This is reason #42 why I only offer MTM leases.Now that that is out of the way, if they are on a term lease, just give proper notice to terminate based on your lease verbiage and local laws(!). 

Long story short - you cant just take the current effective tax rate and apply it linearly to the new price - there are fixed and variable components of property taxes so it wont scale like that. 

I am planning to start a direct booking site for my short-term rentals.

I bought our first property in 2019 and Ali and I met shortly after in 2020.

Hi BP Community, I have a few long-term rental units, but am thinking about transitioning into the more lucrative space of STR.