The final touch for his property to qualify as a SFR (and SFR financing) was adding a portico / cover over the front entry way.  

So here is a very short, quick outline of the legal process in the U.S.A.Any capital raised for investment purposes, in which one or more parties is NOT active in the management of the investment entity, is a securities offering.  

Term SheetInvestor Contribution $281,494Use of Funds Escrowed and disbursed directly to lienholders to ensure title clearanceProperty Valuation Floor 700,000.00Investor Equity Share 40% of net appreciation above valuation floor, payable at exitExit Trigger Sale, refinance, or 10-year maturity (whichever occurs first)Security Instrument Recorded HEA agreement, subordinate to primary mortgage ($306,020)Investor Position Subordinate to mortgage; senior to seller equityClosing Timeline 30–45 days from investor commitmentDue Diligence Access Full access to property disclosures, listing activity, and lien documentation.Strategic RationaleLast 12 months: ~8.68% appreciation—slightly above national averageLatest quarter: ~1.61%, which annualizes to 6.61%High Equity Potential: Estimated $281K in equity post-lien clearance.Market Momentum: Active listing with strong visibility and buyer interest.Risk Mitigation: Investor position secured by recorded agreement and valuation floor.Resulting in liens of $281,494 (investor) and $306,020 (Mortgage) is $587,514Yearly Breakdown:Year 1:Property Value: $700,000 × 1.06 = $742,000Net Appreciation: $742,000 - $700,000 = $42,000Investor's Share: $42,000 × 0.40 = $16,800Year 2:Property Value: $742,000 × 1.06 = $786,520Net Appreciation: $786,520 - $700,000 = $86,520Investor's Share: $86,520 × 0.40 = $34,608Year 3:Property Value: $786,520 × 1.06 = $833,711.20Net Appreciation: $833,711.20 - $700,000 = $133,711.20Investor's Share: $133,711.20 × 0.40 = $53,484.48Year 4:Property Value: $833,711.20 × 1.06 = $883,733.87Net Appreciation: $883,733.87 - $700,000 = $183,733.87Investor's Share: $183,733.87 × 0.40 = $73,493.55Year 5:Property Value: $883,733.87 × 1.06 = $936,757.90Net Appreciation: $936,757.90 - $700,000 = $236,757.90Investor's Share: $236,757.90 × 0.40 = $94,703.16Year 6:Property Value: $936,757.90 × 1.06 = $992,963.37Net Appreciation: $992,963.37 - $700,000 = $292,963.37Investor's Share: $292,963.37 × 0.40 = $117,185.35Year 7:Property Value: $992,963.37 × 1.06 = $1,052,541.18Net Appreciation: $1,052,541.18 - $700,000 = $352,541.18Investor's Share: $352,541.18 × 0.40 = $141,016.47Year 8:Property Value: $1,052,541.18 × 1.06 = $1,115,693.65Net Appreciation: $1,115,693.65 - $700,000 = $415,693.65Investor's Share: $415,693.65 × 0.40 = $166,277.46Year 9:Property Value: $1,115,693.65 × 1.06 = $1,182,635.27Net Appreciation: $1,182,635.27 - $700,000 = $482,635.27Investor's Share: $482,635.27 × 0.40 = $193,054.11Year 10:Property Value: $1,182,635.27 × 1.06 = $1,253,593.39Net Appreciation: $1,253,593.39 - $700,000 = $553,593.39Investor's Share: $553,593.39 × 0.40 = $221,437.36

Santarelli skimmed from some investors to make interest payments to others, authorities said.The investigation is continuing by Homeland Security Investigations and the FBI, and is being prosecuted by Chief Assistant United States Attorney Jennifer L.

2) Did you have an adequate security deposit?

But in your situation, if I had to rank buying in a place that allowed STRs and buying in a place that had slightly better numbers but was less secure regulation-wise, I'd opt for the former.

But there’s another side to the business—the paper behind the property.A real estate note is simply a promise to pay secured by real estate.

I’m trying to better understand what makes out-of-state investors feel more secure in a place like Indy, especially when trust has been broken before.

I will often offer 10% for 6+months to secure the longer stay.

Update 3/27/25: After I cancelled my contract with Evernest, they found a way to charge me extra, retained my security deposit and said I owed them another $80 somehow despite the fact that I prepaid for every service and contractor.Experience was in fact so bad, that I’ve listed the property for sale and will likely take a loss on it.