It will increase tax rates on STRs from residential to commercial, so from 6% to 28%. 

If this was a tenant of less than 2 years, I might do as you are suggesting and want 1 months rent as a termination fee.

Please note, based on the numbers provided you will not be cash flowing. 154k loan amount - 30Y fixed  4k in annual taxes & Insurance 7.75% Rate Monthly PITI Payment = $1,436.60Your estimated rental income is only 1k-1.4k per month.

I dunno if I'd pay the fee and drink the Kool Aid. 

Here are a few: I just saw a LinkedIn post with a sponsor talking about how they are underwriting using cap rate compression, meaning that in 5 years the sales price cap rate will be 50 bps lower than the purchase cap rate. 

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

On 60k, fronting 10k should get the project through with no stoppages waiting for draw disbursements and then the 10k minus the draw fees goes back to you at the end. 

We're considering our options for moving forward.Numbers:Purchased for ~ $230,000 (2.5% interest)Remaining balance ~ $220,000Appreciated to ~ $400,000Cash flow is ~ $500 a month after setting aside for all reservesOptions we're considering:1- Cash out refinance- at current market rates, rough estimate is that we could access close to $100,000 in equity, but our cash flow would go to $0 or possibly negative for a period.2- Sell now - if we sell before the end of the summer, we could still qualify for living in the property for 2 out of the last 5 years for the additional tax benefits.

We charge $2200 + fees and taxes in January and $2300 + fees & taxes in February.

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.