The properties went up in value a bit then back down due to interest rates going up.

The short term rentals rates are at a premium in this location and I am trying to determine the best investment option as someone new looking to renovate with the above options and rent either half or all of the unit.

Solid cap. rate on the property and was eager to see the deal through (never be an emotional buyer, I didn't follow my logic).

Solid cap. rate on the property and was eager to see the deal through (never be an emotional buyer, I didn't follow my logic).

I'm all ears 🙂  also, what's a good rule of thumb for coming up with a good rate to charge.

What amount of depreciation recapture do you anticipate paying at ordinary rates?

It all depends upon the total cost of construction, based on that your monthly fixed cost/mortgage will come into picture.You cannot rent too far from market rate, essentially you should have some spread between mortgage(construction cost) and rent to cover for cashflow, vacancy etc.I would suggest you to keep the selling it out as your second exit strategy if renting is your first one. in that case your construction cost + selling cost cannot be more than market price of new construction.You can also try to reach out to developers to give them a piece of the pie but then you will have to sell for sure.

I don't recommend the Midwest unless you do Class A or B, which will not positive cash flow with long term rentals (maybe MTR or STR depending on location) at current 7% interest rates.

I'm telling potential STR buyers that if they can stand short-term mediocre numbers, they're likely to see an increase in the metrics in the next year or two as A) new investors continue to waffle over the higher interest rates so new listings decline and B) some existing owners sell because of the lower numbers of the past year.

The individual owner of a seller financed mortgage enjoys a notable advantage over a traditional financial institutions, direct one on one negotiation capability with the borrower. its an advantage for negotiating new terms, adjusting interest rates, and addressing unforeseen issues.We have heard that this is a way for the owner to avoid "Capital gains"?