A little more context, the only debt I have other than my mortgages is a $500 car loan.

The money is also tax-free as it is debt, so it isn't income.

Example Purchase: $1MDown Payment: $300K (30% average)Debt: $700,000Units: 12Cost per door: $83kRents: $1,000 per door (GOI = $12,000 per month x12 = $144,000) NOI: $144,000 - $72,000 (50% for expenses is what I'm hearing) NOI = $72,000Cap rate: NOI $72,000 / Price $1M = 7.2 cap Let's say this is a value add opportunity and you're able to increase the rents by $200 per unit.

Example Purchase: $1MDown Payment: $300K (30% average)Debt: $700,000Units: 12Cost per door: $83kRents: $1,000 per door (GOI = $12,000 per month x12 = $144,000) NOI: $144,000 - $72,000 (50% for expenses is what I'm hearing) NOI = $72,000Cap rate: NOI $72,000 / Price $1M = 7.2 cap Let's say this is a value add opportunity and you're able to increase the rents by $200 per unit.

Example Purchase: $1MDown Payment: $300K (30% average)Debt: $700,000Units: 12Cost per door: $83kRents: $1,000 per door (GOI = $12,000 per month x12 = $144,000) NOI: $144,000 - $72,000 (50% for expenses is what I'm hearing) NOI = $72,000Cap rate: NOI $72,000 / Price $1M = 7.2 cap Let's say this is a value add opportunity and you're able to increase the rents by $200 per unit.

I’d argue that in 20% interest environments, buying a 12% CAP rate would cause you to go bankrupt if you are using debt service in any way.

Haha I was thinking about it and one way that came to mind besides getting a partner which is also a good idea, is to consider finding people who have no debt on their homes and using the seller financing method to secure a deal.

I then secured $250k equity investment, $80k in tax credits, and $670k in construction/perm debt to fund the project.

There are probably a good number of STRs that operate without a permit, the old 'better to ask forgiveness than permission' mindset.

Possibly upgraded doors and paint for the walls that might be more forgiving for scuffs and bumps.