Some sophisticated lenders are now using the debt service ratio instead of DSCR after 2008.

Dropping the rents $100 a unit would still cash flow $200/door with the tenants paying utilities.Numbers at a glance:Gross Income- 22260Taxes- 2084Insurance- 1000Management- 2226Utilities- 9500NOI- 7450 assuming no vacancy or CAPEX (just to illustrate how bad the current numbers are)Debt Service- 6535 (30yr, 20% down, 5.5%)Annual Cash Flow- 915 (Actual for this year with my debt service is -4797 due to CAPEX and no vacancy).

If you plan to expand your portfolio you may decide you need a PM service. 

However, if you have an interest-only loan during the first two years, the debt service is lower, thus the cash flow is higher and could meet or exceed 8%.

While the HOA has a strong argument using this clause against you, I think you have an equally strong argument that the spirit of that clause was to stop owners from selling products or services out of the home, not to stop STR.

@Kevin Leppink I’m not sure how similar Utah is to NC, but as RE agents here we have access to something called Realist which is a public record database.

I'm just not sure if the bank/servicer are obliged to bid the market price minus the Net Value cost factor (15.95%) or the balance of the loan.

And you may also be able to order it through your licensed servicer.

Realty Trac or foreclosures dot com all feature services that show you for 7 days properties in your area, as well as the equity in each deal. 

Please speak with your accountant if you have questions about what types of home improvements qualify.IRS publication 936 explains how the home mortgage interest deduction works.