It has gotten increasingly frustrating to deal with inadequacies and complaints from my tenants as far as payment processing.

Rehab costs, taxes, and interest during this phase increase the depreciable basis, providing long-term tax benefits.

It's kind of disconcerting when I can only raise rents by 5% but insurance is increasing by 10% to 15% per year. 

Then the remaining profits get distributed at whatever split you both agree to...I often see it start at 25/75 (75 to the person in your position) and then maybe increase it to 40/60 or 50/50.It would really help if you could provide some numbers on your deal. 

This would greatly increase cash flow and create equity.

Do you need to increase rents in the next year to cover your costs?

Again, your time and energy is better spent increasing accountability and pushing RAD to improve their staffing with individuals qualified to maximize their portfolio at this time.....and in the future spend some time and money to perform adequate diligence before you invest passively. 

If the market value mentioned above is accurate and the “initial” loan balance hasn’t increased by rehab funding, I wrote above that the proceeds are just a couple million after closing costs and commissions.

Currently we are seeing STR owners posting for sale due to reduction in prices they can get per night and the vacancy rate increasing. 

It's not that different from a normal rent increase.