What is your cash on cash return?

I agree with @Alexis Sostre - tree through house = increased risk & that return is not commercerate to the risk taken on... your contractor estimating is giving his best guess but there's no telling what he could find. 

That can help you move the property faster and protect your returns even in a quieter season.

My work focused on sourcing, underwriting, and structuring both equity and credit deals for single-family rental and build-for-rent communities.That experience gave me a deep understanding of how lending drives every part of a deal, from builder capital needs to investor returns.

The borrower showed us a tax return for 2023 that showed he had paid $2,050,000 for the subject property as this was the acquisition cost listed in the modified balance sheet as part of the corporate tax return.  

Quote from @Moe Sidd: @Amy Karony, I ran the numbers myself looking into STRs in Cancun, Playa Del Carmen, Tulum, etc. and found I could get better cash flow returns in the Midwest long-term SFH investments.

Would also like to know general returns between the two given comparable risk levels.  

It's a different ballgame now with returns depressed, but the reality of the business hasn't changed and there's not really any way to skip over that part without damaging your future returns by more than you're saving up front.

The Smart Investor's Secret Weapon: ReservesIn a market where interest rates are high, deals are tighter, and uncertainty seems to be the norm, reserves are one of the most underrated forms of protection an investor can have.We often talk about cash flow, returns, and growth — but what truly sustains a portfolio in challenging times is the ability to withstand the unexpected.

I can build cheaper than buying similar, no unknown issues as I perform most of the work, and have 12%-16% CoC returns a year after completion.