You likely need a much larger volume in lower cost areas to make the same money.  

I'm buying a 20 unit motel that will be converted to extended stay and expect guests to stay month to month, and beyond. 

This likely would come close to the cost of a ground up 3/2 ADU addition which is rare.  

Most commonly, I see that clients can do a rate and term refinance after 30-days of ownership but most people wait 6 months to be eligible to do a cash-out refinance. 

As a result, we need about 3.2k per month for mortgage + property taxes.

I am 2 months into the rehab with another 2-3 weeks to go.

The bank sold it at sheriff sale 6 months later for $61k.

Refinancing doesn't make sense as I'd effectively double the current interest rate and have additional closing costs surpassing the PMI. 

Best, Justin  Hey Justin, If you need to use the Short Term Rental Income to qualify, DSCR lenders will need to verify the property has been booked as an STR for the past 12 months or if you have other STR properties owned and operated in the past 12 months.

DetailsPurchase price: 1.1MReturn (IRR):11.86% per yearCapitalization Rate:5.45%Total Profit when Sold: $1.16MHolding period: 20 years5% down (so that I can take maximum leverage)mortgage rate: 6.7% 30-year fixedVacancy: 5%Management Fee: 8% --> I used this only for calculation but as I will be staying there, I plan to self-manage it.Cash flow: negative $1500 --> My primary job pays decently and I can manage this and have 12 months of reserves.