Additional Info —Key Details:Location: Outside Santa Fe, NMProperty Size: 20 acres (valued at $80,000)Project: Two new STR unitsExisting Experience: Family has two fully-occupied LTRs nearby, generating $2,000/monthConstruction Approach: Self-contracted with licensed trades for electrical/plumbingCost Assumption: $80,000 per unit, plus ~20% for inflation (based on 5–8-year-old build costs)Financing: Using land equity as down payment on construction loan (expecting closing costs to be major expense)Request: Looking for feedback, potential pitfalls, and general guidance

If you could do it differently, owner occupied is easiest to get a HELOC on and has the lowest interest rates.  

As always, some bad actors cause burdensome regulations for everyone else.Per the Akron Cleveland Association of Realtors:"For example, in Cleveland, a local agent in charge must be identified if the property is not owner-occupied.

Nashville, Dallas, etc etc)Yeah, I know states like Florida and Arizona have prohibited local municipalities from restricting non-owner occupied STRs.

Everyone completes an application...don't you want to know who will be occupying your property? 

For example in many jurisdictions I can STR units in a duplex but cannot STR an ADU (some jurisdictions will let you STR if you owner occupy).

The units are all currently occupied right now, so we won't have to worry about the buyer's market right now haha.With the cash flow I will receive, it will be enough to take care of property taxes, insurance, and enough to save up for any emergiences with the unit that I will need to take care of, so no need to worry, I got you :)!

After 25 months, If they can prove that they lived in the property for two of the past five years, they can sell it as an owner-occupied residence.

Hello, due to a hiccup on my personal credit history I am having issues getting approved for traditional financing outside of an FHA which I do not plan to use as I am not going to owner occupy.

The second was in 2022 when I had 3 or 4 in line to be rehabbed and one became occupied by squatters who bothered the neighbors.