Mortgage company may require the appraisal but what may happen is that you would have to fund 20% of appraised value plus the difference between the appraised value and sale price.

The law typically requires the PM to rekey the rental before a new occupant moves in.

I generally agree with @Russell Brazil and @Chris Seveney about written agreements, but there certainly are a growing number of cases (thanks to text messaging, etc.) where the signed writing requirement has been satisfied by conduct other than a signature on the _______________ line at the end of the agreement.Whether there was a binding contract formed in this instance would require an in depth review of the "contract" and all of the relevant communications surrounding it.

Most work this way: Rates: 10% to 14% (Most Deals are 12%)Terms: 1 Day - 24 Months (Most Deals are 6 months)Fees: 2-5 points(%) of loan amount paid at closing (Most Deals are 3 points(%))Minimum Loan Amount: $50,000 (For loans less than $200,000 we charge $2,500 minimum)Max Loan: 65% of After Repair Value(ARV) 100% Rehab Financing Available (Require 20% of purchase price down payment or cross-collateral)Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 10 business days)We have private lending partners throughout the entire United States that cover the following states: AL, AZ, AR, CA, CO, CT, DE, FL, GA, HI, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, OH, OK, OR, PA, RI, TN, TX, UT, VT, VA, WA, WV, WI, WY.

It is different with every lender, but most would require 6 months before you could refinance on the new, After Repair Value. 

@Conte Cuttino our town had requirements you can see if yours does.

We require a 2-year work history, supported by YTD paystub and last year's W-2(s).You won't get stable rent payments, unless tenant has stable income, which they won't have unless they have stable employment.

Not trying to be mean but you should have found out the regs before looking for a place not when your about to close on a property.Now I would call the county and find out what the requirements are and see if you can even make this a STR.Also 5k seems way too low to properly furnish a house.I think 20k would be more realistic even if you bargain shop.I bet I would need 30k to replace everything in my 3 bedroom STR.

@Brandon Warren Provided you didn't exceed 14 days of personal use after "placing the property in service" (e.g. making it ready and available to rent) converting the STR in June 2023 doesn't disqualify your property from meeting the IRS requirements for STR....

This strategy requires a good understanding of the local market and renovation costs.Real Estate Partnerships:Form partnerships with other investors to pool resources and invest in larger real estate projects.