Essentially, the downside to a HELOC is that you're paying a rate higher than most purchase loan products out there.

The house has 2 bedrooms/ 1 bathroom on the main floor, and 1 bedroom/1 bathroom in the basement.

We are placing a bathroom in the basement and had the main line scoped to make sure it was deep enough to pitch our drains back to it.

Over 5 months we did a lot of work repairing walls and ceilings, adding bathroom and 2 bedrooms.

Essentially, if you have a code violations list, you may be able to pull 20k code violations from the last 12 months.

If that is manageable under most circumstances go for it. 5 year balloon not ideal, but essentially you are replacing a 2 year balloon (hard money) so you are safer.

While this analysis is certainly important, investors in metro areas cannot ignore the upfront time and money required to get an STR up and running.In analyzing a potential STR investment in a metro area, include these estimates as upfront costs (these are strictly furnishing expenses, not including any rehab work):- Living Room: $2k⠀⠀- Dining Room: $700⠀- Kitchen: $750⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀- Bedroom: $1.5k⠀⠀⠀⠀⠀⠀⠀⠀⠀- Bathroom: $300⠀⠀⠀⠀⠀⠀⠀⠀⠀You can certainly furnish a STR for more or less, but these are numbers I try to stick to in putting together a nicely furnished rental that includes personal touches and local flair.If you have any questions about STR investing, please don't hesitate to reach out!

Second, I 100% would not lie for them especially when they're trying to get out of their lease early, essentially causing you to lose one months rent.

We only have smaller homes and units and essentially compete in the hotel market. 

Two tone paint, better counter tops, new bathroom grout, clean rust stained toilets, laminate vinyl flooring that should last longer than carpet, etc. better landscaping.