The following items are covered under building coverage as long as they are connected to a power source and/or installed in their functioning location:Sump pumpsWell water tanks and pumps, cisterns and the water in themOil tanks and the oil in them, natural gas tanks and the gas in themPumps and/or tanks used in conjunction with solar energyFurnaces, hot water heaters, air conditioners and heat pumpsElectrical junction and circuit breaker boxes and required utility connectionsFoundation elementsStairways, staircases, elevators and dumbwaitersUnpainted dry wall and ceilings, including fiberglass insulationCleanupThe following items are covered under contents coverage:Clothes washers and dryersFood freezers and the food in themFlood insurance does not cover basement improvements or items not necessary to make the home safe, sanitary and functional -- such as carpeting, finished walls, paint, floors, ceilings, furniture or personal belongings that may be kept in the basement.

It functions for underwriting as if the original borrower is renting the property out.

So a fully updated home may command top dollar but a home that is fully functional but with a dated interior would rent for less.

That’s really the primary function these groups provide.2.

Yes, you have to look long term, and yes, rents should go up over time.You can find plenty of stories of tenants not paying rent for 12-18 months straight during Covid, eviction moratoriums, and you get the joy of repairing the property, ensuring heat/water/functionality with the threat of legal action from the city/county for non compliance, despite non payment.Do what’s best for you-planning to lose money on REI, regardless of length of time, isn’t best for me, so I would recommend to keep searching, or restructure the deal in your favor.

Property will be converted from office to STR/Airbnb and should be fully-functional vacation rental/STR by summer of 2022 What made you interested in investing in this type of deal?

There's no competition and we own golden 3/2 rentals because they are in desirable locations, transportation, size and function.   

On the opposite of the rental market there is a HIGH demand for safe, clean, and functional $800-$1900 SFRs.

University City is really big on it right now, as well as a couple of other North County townships.I would see what function is the driveway going to provide? 

Overall though, the cost on these don't seem outragous by any means and are mainly functional fixes rather than going over the top on cosmetics so at face value this seems like you should be able to comfortably move forward with it