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.

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.

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

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

Use the OM to determine the opportunities while also confirming an accurate cap rate has been used to align to the property's current market value (and/or listed price).Between operating costs and the cap rate is where you'll find the potential opportunities and if it's accurately valued, respectively.Never buy based upon projections versus actuals.

You will likely be in a stronger position both financially and mentally before jumping into another project.

If you are staying overnight only to work on the flip, such as meeting contractors, doing repairs, or checking on the project, the hotel expense is usually considered a business expense and can be written off.

Projects get approved and scrapped all the time.