Purchase price: $380,000 Cash invested: $135,000 Annual rental to be turned into STR when tenant vacates What made you interested in investing in this type of deal?

@Timothy Frazier  This will be tough as the HML will want a 1st position loan, but so will the other lender providing the rest of the funds. 

And indeed they do this all the time.I would get your own accountant's temperature on this first.   

The information contained in this post is not to be relied upon.

Keep in mind this is a self-directed account and most are not.  

When I inquired about it, plumber said lining, it is usually not prefect since this is PVC breakage not just pipe cracks and the cost saving is not significant enough and maybe headache down the road.I will try to get more quotes and maybe a company that specializes in pipe lining options.I was told foundation work / under slab pipe repair is common in the Dallas TX area due to soil type.

Does this change your opinion? 

But that is far from the point of this post.) first they’ll confirm your $1,000/mo “market rent” isn’t a) BS or b) still too low.

This is similar to being a private money lender.

Remember this is a marathon......That said are you planning to flip, hold(short or long term?)