Rate increases, inspection issues, contractor overruns, or title hiccups don’t just slow you down, they compound daily.Now, before I take short-term or private funding, I pressure-test the exit first:Is the refi lender already vetted and realistic?

Some of the paid off market platforms can work but a lot of times they’re just scraped data other people already saw, so I usually see better results from building 2–3 strong local boots-on-the-ground relationships in each market since they’ll text you stuff before it ever hits the public.

STRs are exempt from the passive activity loss limitations if certain material participation tests are met, even without REPS status.Now, for some very rough numbers (this is not tax advice — definitely speak to a CPA for your specific situation):Let’s say you buy the property for $315,000 and you do around $100,000 in renovations.

That gives me time to see what guests respond to, dial in the systems, and make sure the next phase is built off real data instead of guesses.

If you actively participate and qualify under the STR material participation rules, you may be able to offset W-2 income with those losses, especially if your AGI stays near $100K and you meet the IRS tests.

TL;DR1) There is no basis for the claim that no skin in the game means a flipper in trouble will walk.2) For 1-4 unit properties, a lender can’t call a loan if the borrower takes on a 2nd.I have a different perspective and would like to see some data behind the claim that no skin in the game increases the likelihood that a flipper will walk away if they face a problem. 

These deals do exist in our market — we see them close — but the difference between seeing them and securing them is often that extra $10K–$15K advantage a local investor has: Cheaper moneyFaster decisionsLower rehab riskStronger local relationships  On the plus side: We’re extremely disciplinedWe use automations, daily deal flow, and data-driven underwritingWe work this business every single day  But objectively, we’re less competitive than someone living in Jacksonville who breathes the market daily. 

I'd echo the HELOC > DSCR recommendation, especially with a 1.7 DSCR - that gives you solid cushion for rate fluctuations and vacancy.One thing worth stress testing though: the $100k purchase with $1800-2000 rent is a strong rent-to-price ratio (1.8-2%), which is excellent.

According to data from Apartment List, shared by The Cromford Report on January 12, 2026, median rents have plummeted 14.1% since July 2022, while their vacancy index climbed past 8% by the end of 2025.As build-to-rent SFH communities and giant multifamily developments flood our Valley with new inventory and aggressive tenant incentives, I'm recommending a cautious approach to evaluating demand for what traditionally have been our Sonoran Cash Cows. 

There is actually tests you can take to become accredited investors.