Projects almost always go over time and budget and besides the emotional brain damage it can end up being financially damaging even on a long term investment.On the flip side of the coin, a lot of my clients are looking for a second home, and maybe a future retirement location. 

my model is toggle based either using actual numbers or airdna projections; if it's projections it's predominantly based on revenue rather than ADR X Occupancy Rate, thus the fee deduction should theoretically address the occupancy rate concerns 

If it only works with optimistic projections, both lenders and experienced investors will view it as higher risk.The investors who do well long term are the ones who can analyze deals independently and also understand how a lender will view the same numbers.

Hi @Joshua Rodriguez, I haven’t done a flip on my own, but I have invested in flip projects  through my club, and from watching the operators and going through the vetting process, I’ve learned a lot about what matters in evaluating deals.

That can impact tenant experience and long-term asset condition.From an operations standpoint, financing doesn’t just sit in the background — it influences how aggressively reserves are built, how capital projects are prioritized, and how much flexibility there is when unexpected expenses hit.

Now you have a 35% head start on the project costs.Now the house needs 70k in work to get a C/O. 

With the tax-free gain of $500k on a $500k remaining mortgage, I'm considering taking the $1m of tax-free cash and buying some STRs with my LLC as follows:Research indicates 3-5 BR SFH are best near Jay Peak or North Conway, so I could probably acquire x2 STRs with that cash and projecting (based on AirDNA):BALANCE SHEET ($/yr)- INCOME-- TOTAL (annual revenue target): 100k (assuming low end of STR math from this website) - EXPENSES-- taxes = 1% (NH) + 2% (VT) = 15k-- insurance = 0.25% = 2.5k -- PM fees = 20-40% (I'm seeing a wide range - anyone have comps?)

For a STR DSCR loan, the actual or projected rent has 20% of the income deducted for expenses and then the leftover rent money is weighed against the new mortgage, property taxes & insurance and HOA (if applicable).

What makes a deal good is we don’t know till the end of the project and it’s stabilized.

I use QuickBooks Online and organize everything using Projects.