When the property appreciates, it increases the equity on a 1 to 1 basis. 

I am a licensed MLO in Louisiana and would like to learn everything about the entire business. 

I own a business that builds modern, prefab tiny homes (or cabins depending on how you look at it), and I am looking for a market where I could set up a few of these to use as model homes, available as a STR.

Do not be scared to politely but firmly renegotiate with these established guests to terms that fit your business plan: raise price to where you cover expenses and require that they either rent from Dec 1 or from Jan 2.

For example buy 300k property, renovate it (pay yourself essentially)  turn into 400k+ plus home, increase rents and cash flow.   

Hello everyone, I'm interested in starting my STR business.

I know you can buy properties faster by leveraging money from others, but I think it increases the risk.

Regardless, it is a rare large city where it is initially cheaper to purchase.However, most people use fixed financing so this will not increase.  

Here's another key...we usually want to see that someone has done similar projects in the past...or at least projects of progressively increasing complexity. 

I thought if you rent < 7 days avg it was a business instead of a rental.