If you max it out your debt utilization rate shoots up to 100% on that line of credit which can cause the credit agencies to lower your score quite substantially.

- airDNA forecast increasing, >$550/night by 2021)Short term Rental Fees:-Property Mgmt (20% of revenue)= $1900.00 -Local tax (13% of revenue) = $1235.00General fees:-Mortgage Principal+Int: $1578-Insurance(monthly): $160-Property tax(monthly): $317-PMI: $200 -HOA: $0-Maintenance: $500/month -Utilities/electric: $250-Utilities/grass: $150-Utilities/water: $100 -Utilities/Internet: $70 -Cap Ex (saving 5% of revenue): $475-Vacancy (Saving 5% of revenue): $475——————Total: $7410$9500-7410$ = $2090 cash flow/month on average ——More traditional rental, eg month-to-month: 4 months per yearRental IncomeUnit 1-(3 bd/1ba): $2500/mo Unit 2- (1 bd/1ba): $1100/moUnit 3- (1bd/1ba): $1000/moTotal: $4600/monthGeneral fees:-Mortgage Principal: $1578-Insurance(monthly): $160-Property Mgmt (10% of revenue)= $460-Property tax(monthly): $317-PMI: $200 -HOA: $0-Maintenance: $500/month -Cap Ex (saving 2.5% of revenue): $ 122.5-Vacancy (Saving 2.5% of revenue): $ 122.5Total: $3460/month$4600-3460= $1140/month in cashflow on average

Looking at a duplex where the current owner pays utilities simply because there is no si meter for water or electric.If I were to try and sub meter it, how much would that cost?

@Miles Thompson When we have done major renovations like this, we utilize construction mortgages through our mortgage brokers which give us the funds to perform thw ork in draws.

As far as questions you can get a pretty good picture from:1) are utilities all separated?  

Is that something folks here utilize to fund their short term rentals?

My key areas of rejections are: any past eviction in last 7 years, past due car payments, judgements/bankruptcies , utilities in collections, address/social security mismatches(I've caught a lot of scammers this way), fake landlord references(usually caught through simple county searches).

, and 3) if you also invest in Huntsville, do you feel like that this is a good market to utilize either one of these strategies?

Our clients have had some great wins in this market by utilizing an appraisal gap strategy. 

I do have some personal funds that I could utilize in the 1st year if needed.