Base on your calculation, $6K x12 = $72K/YR, then minus 12K/Yr(Tax, Ins, Mx) = $60K/yr then divided $783K, looking at cap rate (NOI) 7.6% which is high compare to the bay area cap rate.Usually high cap rate (8-12%) = high turn over tenants (Crappy tenants) lower appreciation.Lower cap rate (3.5 - 4%) = Quality tenants and high appreciation.Been an investor in/out of CA for the past 10 years, I will always pick bay area.GOOD LUCK!

My yearly bills were $600 compared to $16,000+ if I had stayed in the dorms.

These have been formed for flipping purposes with partners who are funding the deals.

I look at the numbers  people are getting for rent on Balto homes , and then I compare them to what I get on mine in Pasadena , ( south of Balto ) .

So a HELOC is good to have for that purpose. 

If the borrower has other properties already, then the new one using FHA loan must have the biggest sq ft. and is the biggest house compare to other houses.

I know it is illegal to discriminate, but has anyone purposely created a STR for physically handicapped vacationers?

I prefer to target multi unit purpose built rental properties that have been poorly managed and are under market rent.

I wrote an article that compares both options-https://www.biggerpockets.com/renewsblog/buy-rehab...Hope that helps.

Hi @Adam Sechrist What I would do is offer the initial value of the property, the purpose of obtaining the deal.