This is due to overbuilding STR complexes and all the extra hotel room capacity doesn't help out either.

I will also say that unless you are working as a single agency, I NEVER refer to my customers as "clients" because as a transaction broker we do not represent our customers in any fiduciary capacity.

@Khursten CornwallPersonally, I agree with your thoughts on buy with HELOC and refi, but there are several factors at play.Like you said, I like to keep my HELOC capacity for short term investments given its variable rate, or worst case a major unexpected capital need for me or my family (not to be confused with keeping in savings).The major factor I would look at is: are you actually increasing the value of the new property with your work. 

Not sure of their capacity right now, but definitely check them out.

It's a high desire area for people to live, but the sewer treatment facility is at max capacity.

Buying it based on the pro forma NOI would take away from the value-add strategy because you're essentially paying the seller for the work that you will do and for the increased NOI that you will generate.If you find a multifamily property where the current NOI is not at full capacity and you increase the NOI, then the value is determined by applying the area's average cap rate to your new NOI. 

One of the main issues though is this SUB 2 training to the masses its an advanced strategy for those with substantial reserves and capacity it is NOT something that begineers with little or no funds should be doing so in my mind and others who have done a lot of SUB 2 ( myself personally hundreds of them) teaching this the way its being taught and then networked on facebook this is going to lead to a lot of failed transactions and devistated sellers just will.

One option is to pay down any existing debts (credit cards, car loans, etc.) to free up income capacity.

Everyone has a certain capacity that the operate the best in, find this and stay in your lane.

Full disclosure of the negative consequences (retention of liability without ownership of the asset securing that liability, limitation on credit capacity, etc.) must be provided the seller IN WRITING.3.