This is EXACLTY what Clayton Morris did to his clients dumped them into low end properties and millions were lost.. this is something in my personal opinion that will never work and investors are going to sign on to these high interest rate private mortgages and find themselves in trouble. thing of it logically if you have the cheapest homes basically in the entire US what kind of renters are they going to attract..  

If they don't like it, you can find another tenant willing to pay market rate and pet fees.

I would keep your peak season pricing the same and look at improving the rest of the year by decreasing pricing some until your occupancy rate ticks up a little.

Compare rates, terms, and see if you can secure a more favorable situation.Get legal advice on the private loan contract and your rights as a borrower.

Existing rents were well under market rates. 4. 

However I did some research myself on crime rates, and from 3 different sites, they all suggest that crime is rather high in that area:https://www.neighborhoodscout.com/tn/memphis/crimehttps://crimegrade.org/safest-places-in-memphis-tn/https://www.memphisdailynews.com/CrimeReport.aspxChecking city-data.com, the average salary for that median household income is around 39k.Also, the property value is listed at 145k, which seems like it is on the lower end.

Personally I'm fascinated with Sub-to, especially if you can takeover a sub 4% rate.

Going rate build rate is roughly 375-400/SF.

What are their nightly rates?

I think the interest rate is nice in this market but the return on your money annualized looks low, I am just curious what I am missing.