You have to look at projected market rate rents in the upcoming 2 years.

Look at at least 12 months of actual performance, not projections.

New construction do not need to be cash flow negativeI'm a developer based in LA city which completed over 30 projects.

I typically would not invest in active RE for $1k/month projected.  

I have not invested with him so I cannot comment on how his projects have panned out.I recommend asking him for some referrals from investors.

After the sale, we are projecting about $400k after it's all said and done (realtor fees, closing cost, debts paid, etc)

I toured a lot of properties before buying my first rehab project in a Class C neighborhood. 

Projects get approved and scrapped all the time.

It's a clean project with a big payout at the end, no ongoing landlord headaches.Finding the right deal is the main game.

In some areas, the ROI ends up being more stable than pure nightly STR.At a $250k purchase price, I’d pay close attention to:• Local STR regulations and enforcement trends• True occupancy patterns (not just projected revenue)• Seasonality dips• Insurance + turnover costs in that zip code• Your exit strategy if you ever pivot to long-termOut-of-state can look stronger on paper, but it adds layers operationally unless you already have reliable boots on the ground.If your goal is scaling, I’d focus more on operational predictability and repeatable systems over chasing the highest projected ROI.Happy to share a little more of what I’m seeing in ATL from the operations side if it helps.