@Erik Estrada, that .25 example is wild — definitely an edge case, but great reminder that commercial leases can dramatically shift the real coverage, even if they don’t help with qualifying.In today’s market, creativity and compensating factors carry weight, but the underwrite still needs to make sense.

Appreciate the reminder that real estate is a long game built on trust and patience.

That conversation was a reminder that organic connections still matter.

Just a reminder to all out there to stay up to date on Fair Housing rules and the protected classes in your state.

I'll remind people of that, and of your rattlesnake-school-of-not-recording-deeds.

Quarterly text reminders: Once per quarter I send: “Quick check-in.

I’ve started highlighting key rules in the check-in message and adding simple reminder signs around the house, and that’s helped cut down on issues a lot.

Remind ALL of the tenants that they are renting a room in a shared house and while they may not be friends, they need to be polite and respectful of others. 

Great points, Jeff — and you’re right to highlight that the expense ratios are unusually efficient for a coastal STR.A couple of clarifications on the numbers:The current owner self-manages, which keeps cleaning and maintenance costs lower than a third-party STR manager would typically charge.Some of the repairs and CapEx were front-loaded in prior years (new flooring, appliances, and paint), so last year’s P&L reflects more of a stabilized-operations scenario.The utilities figure is accurate — it’s higher due to being master-metered for the property — but the other OPEX categories are slightly understated if you were to underwrite this as a fully managed, third-party operation.If I modeled it using a professional management assumption plus normalized reserves, the operating ratio trends closer to 48–50%, which aligns with what you mentioned for coastal STR multifamily.I appreciate you calling that out — it’s a great reminder of how much variance there can be between owner-operated and institutional-style expense reporting, especially in hybrid STR assets like this.Here's the owner's profit and loss statement for the exacts of the 2024 year.

This is a reminder to always work closely with your real estate knowledgeable CPA!