If so, does it matter if it's in the state we're trying to buy property in? 

My hangup is that even though the HOA is not allocating $85k for the reserved this year, they will have over $200k in reserves (over 20% of the $850k budget) Everything else has been cleared by the underwriter (insurance policy, occupancy rate, ect..) but I am concerned this deal will fall through because of this issue. 

Hi BP fam--I'm trying to analyze my first potential STR deal.

I'm trying to decide what the best path would be with the $110,000 that I pull out.  

Lease expire in 5 yrs but I don’t see a renewal option offered to the MSO group.They bought this place 2 yrs ago.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

This might be a stupid question but thanks in advance!

This appreciation allows you to build equity, which you can later tap into by selling the property or refinancing to buy additional assets.Real estate also offers significant tax advantages.

My partner and I are currently trying to work a deal with an investor to purchase an apartment complex.

Effectively turning a duplex into a triplex.Does anyone know if there is any issue with doing this?