This can be REALLY expensiveI prioritize layout and functionality, along with the most important factor: location.In the Philadelphia area, I’m consistently seeing better rental performance in the outskirts and surrounding counties compared to the city itself.When analyzing a deal—especially in a hot area—it’s important to understand the potential of the property, not just what it’s producing today.

If the home isn’t fully habitable or functional, or there are other glaring concerns, DSCR won’t work.

Successful operators maximize offseason programming (events, summer activities) to stabilize cash flow.Waterpark ResortsWhat defines them:Waterpark resorts include indoor or outdoor aquatic facilities of at least 10,000 square feet, featuring slides, pools, and interactive attractions designed to drive demand.Investor considerations:• Family-oriented demand with strong repeat visitation• Indoor parks can reduce seasonality• Water attractions significantly boost length of stay and ancillary spendKey risks:• Substantial upfront construction and mechanical costs• Ongoing safety, staffing, and maintenance requirements• Higher insurance and operational oversightInvestor takeaway:Waterpark resorts function as entertainment-anchored hospitality assets.

Focus on properties that may be overlooked perhaps those needing smaller, less expensive updates like adding another bedroom, improving functionality, or improving curb appeal.Investing remotely could also work, especially if you target markets with better cash flow potential and less competition.

Depending on your price point, you may not need to have brand new HVAC, electric, and plumbing--just functional and reliable.The best bang for your buck is to update colors and styles. 

If it changes how the house functions, pull permits.

This is one of those areas where having clean records and a clear audit trail really matters, I’ve found that keeping everything organized and tracked the right way makes these smaller deals much easier to justify and sleep well at night.If you’re prepping for REP status, start tracking your hours now so it’s easy to document later.

A functioning STR isn't worth any more than any other condo like it in the complex.

@Dillon Clark thanks for sharing, am I understanding correctly that you are currently working on taking a property from raw land to a functioning camp ground? 

I think ALL marketing works it's just a function of sticking to it for an extended period of time.