Unlike a traditional rental license, creating a shared housing facility requires city council approval and opens the project up to a public comment period, which means that you basically need to get neighborhood buy-in to operate the property.

So if $36,000 is owed for the remainder of the lease, AND the lease has no provision for allowing for early termination by the tenant, the tenant will owe $36k minus whatever NET rent is collected for the period of contracted tenancy.As per the property manager’s conclusion that they would be owed $1,800 in the case of you taking the property off the market, it sounds probable but no one can know if this is correct without reading the contract between yourself and the property manager.As a side note, many people entering lease agreements aren’t financially or business sophisticated, and probably don’t realize their potential liability.  

Now if you want to get extra creative…  • Lease Option or Installment Land Contract You can lease the land for a period while you’re prepping your plans, and then convert it into a purchase.

PROBLEM; When the 12 months maturity date came due in 2025 the borrowers COULD NOT pay off the $27K 2nd lien So the Investor lender agreed to FULLY AMORTIZE out the $27K over a 60 month (5 year) period of time with monthly installments.

However, these benefits come with significant trade-offs, including higher costs and shorter repayment periods. 

While you may think a couple of hours away is no big deal the reality is that it’s a huge deal and after the honeymoon period winds down you’re going to find yourself making excuses for why you’re not spending more time there.

The value add was minimal during the hold period.

Creative way to get started (but you need some sort of good credit history and an LLC setup) = capital stacking.. utilize a company that gets you business credit (through multiple credit cards with introductory 0% interest for a period of 2 years)…liquidate the credit cards thru another 3rd party, and then you could have potentially $75k to start a fix and flip business.

STR must be 400ft from any other STR and it has a public comment period for neighbors to basically contest.

If you know you have specific CapEx expenditures coming up in a defined period of time, you need to allocate enough per month to cover that cost when it becomes necessary, unless you are going to finance a portion of the cost at the appointed time.