Also, our properties are commercial so it's not like I'd need to go to a duplex and sweep and clean the place.IMHO my CPA is not conservative at all. 

This increased demand is in areas that all ready have limited supply.Since the rates started to rise, my appreciation forecast has been conservative (as I have indicated in numerous posts) for my San Diego market (I have been underwriting at zero appreciation near term) and fortunately for me the market out performed my forecast.  

This is way more conservative than a lot of people I talk to and has definitely meant that I lost out on opportunities, but it gives me bigger peace of mind and in shifting markets I feel better prepared to adapt if need be. 

The key is ensuring you work more hours than anyone else on the property, including your property manager.Keep a detailed log of your hours spent on the property—managing listings, coordinating cleanings, marketing, and even initial decorating/setup all count.Some CPAs are conservative and hesitant to qualify STRs as active, particularly when property managers are involved.

Where I am looking for guidance is we plan on using a larger down payment of at least 50% to be on the conservative side of leverage.

So if the LP's have enough cash they simply pay the loan off and own it free and clear.. but the size of the deals are so large raising cash to pay off debt simply is not realistic at all so if the property goes into default your junior position investors find themselves wiped out.Further more thats why a debt fund like Chris has can be a good choice for the very conservative investor..

@Brett Danehey, I would say that area is questionable, but I definitely lean toward the safer, more conservative side. 

While the numbers they provide might make sense under specific conditions, it’s always a good idea to apply a more conservative approach to ensure you’re prepared for the unexpected.For vacancy, the tenancy averages they’ve shared (3.8 years for C class and 6+ years for B- class) aren’t out of the realm of possibility, but I’d treat them with caution.

Just be extra conservative with your ARV estimates and have a great team of contractors to keep rehab costs in check.

.- Set Conservative Estimates: For CapEx, maintenance, and make-ready costs, consider building in a buffer to account for unexpected expenses.