Just make sure the new payment still leaves you with healthy cash flow once it’s rented.Like Joey mentioned, short-term rentals offer some attractive tax benefits if you’re willing to put in the work, but you’ll want to make sure it aligns with your current income (if you're looking to use the STR Loophole to offset) and that the numbers make sense for you.

. 😊🙏🏼 I am concerned for your financial health:- I believe RE is more challenging than in recent times.- I believe the highest cash flow markets have the highest risk.- I fear a rushed purchase has additional risk.- make sure you have a good 1031 intermediary.- I believe the local market is challenging, especially with your goal of immediate cash flow, and not local (out of state) is higher risk and effort.Where is your current property that you are selling located?  

.🏘️ Deal Snapshot (Hypothetical Example)Purchase price: around $490K (≈ $18K/unit)Rehab budget: about $70K (mostly interior updates + deferred maintenance)Market rents: roughly $1,125/unit → ≈ $30K/month or $360K per year grossVacancy: 8 % | Operating expenses: 40 %Estimated NOI: ≈ $200K / yearAfter stabilization, this could support a DSCR refi and healthy cash flow, but the part I’m trying to understand is how the bridge loan and equity piece usually work together.💡 Questions for the communityBridge Loan Mechanics:How do these short-term “interest-only + 100 % rehab funded” bridge loans typically operate in practice?

In financial terms, having asset under management CFP is like a very healthy person with a low-deductible insurance which means you pay high premium every month for something you hardly use.

This is unusual as rents typically dip in this time of year.Rentals - Availability by MonthThe number of homes for rent decreased MoM in September, again bucking the usual seasonal trend.Rentals - Median Time to RentTime to rent increased MoM from 24 days to 28 days, but remained healthy especially for the season.Rentals - Months of SupplyThere are only 1.4 months of supply for our target rental property profile.

If cash flow is healthy, lock it in with tightened leases and professional PM systems; if not, raise under‑market rents on renewal, improve collections, and tackle highest‑ROI CapEx.

This maintains a healthy 25% equity cushion in the property, which protects you against market fluctuations and keeps your loan options and rates the most favorable.Let’s do some quick math based on your numbers:Your net income is fantastic.

Fortunately, we don't have a financial crisis, and it appears that home prices are stabilizing, though well off of their 2021-22 highs.I think this is healthy. 

My best funds are showing 3.0-3.5% returns annualized at this time, and my least healthy called up $2m in capital, or in the case of Ashcroft, brought in some new investor capital to shore things up.

But my personal experience is such that if someone ever provides me with a proof of funds letter, I'm checking with the contact at the bank who gave the letter, and their supervisor as well to ensure that the buyer actually has the specific funds mentioned in the letter, under their complete and absolute control, and that those funds have a healthy degree of seasoning before I accept it as valid.Best wishes,Rob