This allows for 45% of the effective rent to be spent on all your expenses (taxes, insurance, management, common area utilities, etc. - but not your mortgage payment), and gives you the net operating income (NOI).

However, if you plan to do a furnished rental, then I think month-to-month may be more common.

I have built around  20 homes in the past 2 years all with the exact home plan and  I been doing spec and custom homes my entire life.

You can properly operate the STR in your personal name to include the financing, proper insurance, etc. 

Agree with your insurance agent, many investors have been backing out of Canton for the last  number of years because of antics like this. 

@Henry Clark  Let's plan on Friday. 

That was enough to get me through the door but his company offered a few other things I didn't expect such as an intro to the lender, title company, insurance agent, and property management team.

Is 3% really that tough to give up for providing most of your guests, extra insurance, customer success, payment processing, communication, etc etc etc?

Always have a plan-or more than one.

@Ravi KaruturiRavi, a Project with a $10M “all in” cost will typically support a 70%-80% loan to cost (LTC).This means that you can borrow $7M-$8M which means that you will have to invest an equity infusion of $3M-$2M.More fundamentally, if you are asking a question like this, your priorities need adjusting.Raising capital from whomever, and especially from friends and family must come after you have acquired and can demonstrate the skills necessary to build a $10M ground up development.I believe that if you pursue a plan to raise the equity required that you will find it very difficult to secure bank debt without a track record and or the skills noted above.Feel free to reach out to me if you want to talk.