If your goal is to generate a monthly cash flow(looks like $3500 under an Air BnB model less your subject to PITI and he 85k in debt service, assuming you financed that also) - why not dump this deal which has 26 years of debt service left on the note and significant cash needed to do it, and go and rent a similar house which is fixed up in the same neighborhood - and then Air BnB it? 

In hindsight, one thing I didn't plan well for in my models was utilities- I didn't know exactly what they would run and didn't know how to best split them up.

Most models will have screw-on knobs, so simply unscrew these and set them aside.

IMO, the VBRO, HomeAway & AirBnb are bad business models FOR THE INVESTOR. 

Last night, I got into the "flow" and got absorbed into a financial model that I was building in excel . . .Three hours passed without me noticing . . .One area that I enjoy in real estate is being able to create financial modelsI'm admittedly not a pro, but being able to express a set of assumptions about the futureand then see how those assumptions affect cashflows can be enthralling-----When was the last time you found 'the flow'?

You then pay points and interest from the day you won the bid.in some instance they will fund rehab etc.Now with these guys bringing in uber liquidity you can imagine how competitive the sales are and or were.. and deals become very thin the HML in these scenarios made as much if not more than the person buying the foreclosure if its a flip.. for someone buying a rental they may get the property for 10% back of market.. for someone looking to move in same thing.So the lender gets the bidding fee  they get points and interest on the money put out and they have 20% skin in the game from the borrower.. like I said genius model.PS I am experimenting with a version of this model as a lender in a few mid west markets were the purchase prices are so low.. compared to WA CA OR NV AZ  

Then continue this model so on and so forth.

The problem is really just in the beach areas from everything I've seen.I wouldn't personally invest in STRs as a business model as I look to the future. 

I called up my agent, we viewed the model homes and by April we had given the builders the earnest money and we were in the design center picking out what we wanted for our brand new home.

Make sure that you talk with them and take the time to make sure that your business model of how you run your rental business aligns with how they run their property management business.