That also needs to be insured and has a monthly lease payment.

However I don't have enough cash budgeted out to put a down payment on a second STR.

Also, wondering if folks lend with the ability to only pay interest on the "drawn" funds during each payment to contractors?

But even then you still need to have cash available.

@Frank Alfano agency debt is very competitive (75-80 ltv, non-recourse, fixed-rate etc); you can syndicate and raise the equity portion needed from friends and family, provided you can market and lead the project.

I think it is best for me in my situation to use an all cash offer, and I don't rent back to distressed sellers.  

This will be my first investment property and My fear is that I will estimate my cash flow incorrectly and end up losing each month.

I got a PA for 300k/FHA loan. 720+ credit score, 75k cash, and good income.

Purchase price: $160,000 Cash invested: $45,000 Ended up buying the property after getting to know the owners who were cleaning up when I went over to ask them permission to cut down the leaning branches toward their roof.

I am guessing you guys are non-accredited investors.