If the tenants have otherwise been good, just chalk it down to a fluke.

I was just wondering if buying properties and rehabbing them would be a good way to transition into becoming a residential developer eventually?

Might have this as an actual deal under contract soon... Just curious if the numbers look right to experienced wholesalers before I lock it in...Let's assume the property is in a healthy market area and that my ARV is...

They had been able to do this for a prolonged amount of time since the economy was still proving to be relatively good based on unemployment figures.

With that being said, you can build a successful STR if you win on two fronts (to simplify it)The real estate side and the hospitality side (operations).The real estate side is buying a very good deal in a market that has a history of vacation rentals in my opinion. 

This is a "good ole boys" market, it's all about who ya know. $850k is a bonkers price for there, so no surprise this outcome. 

A good way to crush the 1% rule in a market that doesn't offer too much of that, but you are basically writing the property off after however long you plan to implement the strategy for. 

@Chris DoucetteIf it sounds to good to be true....It's possible they are just quoting you their P&I payment, when you are thinking they are quoting you principle, interest, taxes, and insurance.  

Good luck Austin!

The good news for your is the  renovation is 10 years old.