If the market value mentioned above is accurate and the “initial” loan balance hasn’t increased by rehab funding, I wrote above that the proceeds are just a couple million after closing costs and commissions.

Currently we are seeing STR owners posting for sale due to reduction in prices they can get per night and the vacancy rate increasing. 

The problem is, that's not proper accounting because a credit card is a liability, and doing this workaround will reduce your assets rather than increase your liabilities, which totally messes up your balance sheet and debt-to-income ratios.  

It's not that different from a normal rent increase.

There doesn’t seem to be a lot of great deals where I am since land has increased in value so much in the last few years.

Adding a 1/2 bath, new roof, central air or other typical improvements will increase the value of the property. 

An experienced property manager should minimize vacancy, increase income, and have connections with contractors and other professionals to manage your property well to maximize your return on investment.To Your Success!

Rents , cash flow and appreciation increase over time. 

With no comps in the area for new construction and the highest rehab selling for 205k, building enough at the onset, 4-6 new construction homes, may be the only way to start a neighborhood turn.The city is looking to increase density in the area and add anchor points in near the area to cater to future investment. 

The shorter the prepayment term has an impact on increasing the rate.4.