Hello, I am new to this group.  I am 63 and interested in retiring, and so I am looking to sell a high end short term rental business in Maine.  It is comprised of three year round treeehouses and two hobbit houses on...

Purchase Price: $185KSeller Credit: $20K applied toward rehab at closingEffective Net Purchase: $165KARV (conservative): $220K – $230KRehab Budget: ~$20K–$25K (HVAC, bathrooms, floors, cosmetics)Exit: Refi into DSCR or conventional in 12–18 months  I’m trying to confirm with lenders how the $20K seller credit will be treated: Will hard money lenders allow this structure and apply the credit directly to rehab?

@Kelly SchroederKelly, I focus on stress-testing deals by factoring in realistic ARVs, holding costs, and potential delays, then adjusting the numbers based on neighborhood trends and exit strategy rather than sticking strictly to a single formula.

If you’re serious about conversion and individual exits, fractional is the cleaner lane.Underwriting on TICs is a bit tighter than on condos, so go in prepared.

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The$150K–$155K exit is per lot, not per home.

Outline a clear exit strategy to meet your long-term goal of retaining the property for cash flow.Work with a CPA to ensure tax efficiency, particularly around depreciation, capital gains, and partnership income.

Make sure your numbers (purchase, rehab, ARV, exit) are solid, and always protect the lender with a lien on the property.

what is the best way to exit if this were to happen?

Quote from @Michael Santeusanio: I see many first-time investors run into the same financing pitfalls:Not getting pre-qualified before making offersUnderestimating rehab costsOverestimating ARVChoosing the wrong loan term for their exit strategyForgetting about holding costsWhat’s one financing mistake you wish you could go back and avoid?