Plan is for year-round STR, conversion of 1/2 the garage to ADU to double heads-in-beds and add flexible living space too.

@Liran AferganWe do medium-term rentals in our own rentals in Colorado Springs and Denver (and work with a lot of investors doing mid-term rentals), and the rental rates are more like 1.3-1.5x that of long-term rents.

In my models, I have expenses (less mortgage payments) track the same number so I find the total rate of return to be relatively insensitive to this number.

It's fully rented at the moment and has a cap rate of 10%, which seems promising.

The 70-80% fail rate is discouraging, but I've seen that on other posts as well, so I won't let that scare me.

Now, even though the red tape has lessened and selling might be feasible, the current high interest rates could make it difficult to find buyers willing to invest at a price that reflects the property’s true value.

To thrive, begin by studying the nearby real estate market, grasping property values, rental rates, and vacancy rates.

Also, it may be smart to consider the differences in the rental rate if you were to decide to shift strategies to an STR or LTR one day. 

If an investment property, there non-warrantable DSCR loan options.Some details:Loans available for purchase, rate and term refinance (no cash out) and cash-out refinanceCredits score down to 620LTV are up to 75% for purchase and 70% for cash out.Rate buydown feature available.DSCR (lower of gross rent lease or Form 1007/216 rent divided by PITIA) as low as 1.0x.For experienced investors (one year of investor experience and own home), short term rentals can be structured off of 12 month short term rental history with 20% expense factor.

I’d like to hear how other investors feel about using “subject to” as the advantages of (1) no qualifying, (2) lower interest rates and (3) no financing costs seem like enough to turn a marginal deal into a worthwhile investment.