There is no additional "risk" on the note like a demand clause etc, but you have  extra expense in upfront one time costs and the pre-payment penalty that most programs are sold with if rates do drop as expected in the future.  

Most lenders who order appraisals are required to order them through a 3rd party AMC, which can add additional costs to the appraisal but ensures that there is no lender (Or borrower) bias in regards to the values.

What do you hope to accomplish?

What I found was, yes it was nice have additional income, but each project seemed to always interfere.

Even successful and furnished properties often need a refresh and at least some additional reinvestment due to wear and tear. - Production: Typically STR production on the Oregon Coast is +/- 10% of valuation.

The 50% is rather deep a cut, especially with all the additional operational expenses not included into that 50%.

Additional DetailsI’m willing to invest in out-of-state properties, though I prefer areas with good property management options.My primary focus is passive income, but I’m also interested in value-add opportunities.I want to ensure these investments provide strong tax benefits and diversify my portfolio.I’d love to hear from experienced investors:What would you do in my position?

We have been working to be extremely conservative with our estimates but with this being our first go at this, any additional expertise is greatly appreciated! 

Here are a few additional strategies that might help mitigate risk if you decide to rent the property:Hire a Strong Property Management Company: While you’ve already spoken with some PMs, consider finding one with extensive experience managing single-family rentals in Cook County specifically.

Then we review the submitted file items and come back with questions or ask for additional documents it is a normal process.