It needs to be project by project and they don't get paid a draw until complete.

Hi Matthew, Thank you for posting.Platforms like Airbnb are great for getting started and guest acquisition but the ULTIMATE goal for any business owner should be to own the customer. 

I calculated the numbers assuming 1, 2, 3 and 4% annual rent increase.At 1% increase in rent, it takes me ~15 years to be cashflow positive annuallyAt 2%, it takes ~8 yearsAt 3% 5-6 yearsThis assumes 0% vacancy.If I look at cumulative cash flow i.e. net gains (loss) from (income - expenses) projected over all years of ownership, those numbers are worse.

I love seeing great projects like this happening on the Southside!

With that being said this would be my second project, but I keep running into problems when going for a loan to buy the multi-unit.

Other investors just want the tax benefits, so it depends on your goals. 

Also, cap rates are so low it's impossible to BRRRR.I have a big advantage in LA area because I have a contractor partner who can build at cost, however, I am wondering if there is any interesting markets 1-2 hours from Los Angeles that can be more realistic to start.Would love to start with a project under 1M.

I'm based in the Western area of Los Angeles and we do projects all over the country. 

I prefer not to put any $ down as 10% would be $150k for this project.

i agree. if you can raise your ADR and make the same amount of money with less visits, thats also less wear and tear on the property. 30% occupancy seems low though, unless that hits what your goals are and your renting season small.