This is actually a really common path and often one of the easiest ways to get started with rental real estate.

And totally understand your frustration, that’s a common feeling in year one of running an STR, especially in high-cost areas like San Diego.From a tax perspective, the good news is that all those setup and operating expenses are deductible, including furnishings, supplies, platform fees, cleaning, repairs, and even a portion of utilities if you’re covering them.

LTV Based on Purchase Price(Common for conventional or some hard money lenders)If the loan covers the purchase only:LTV=Loan AmountPurchase PriceLTV = \frac{Loan\ Amount}{Purchase\ Price}LTV=Purchase PriceLoan Amount​Assuming a full purchase loan of $270,000:LTV=270,000270,000=100%LTV = \frac{270,000}{270,000} = 100\%LTV=270,000270,000​=100%➡️ 100% LTV (purchase-based)🔹 B.

I also underwrite the borrower, confirm insurance, and make sure there’s lender title protection — those steps alone help eliminate many of the common pitfalls I see new lenders encounter.If you’re just getting started, it’s helpful to get clarity on: • the collateral securing the loan • the loan-to-value • borrower track record • how your SDIRA custodian handles notes • what protections you should have in placeI’m happy to share what I’ve learned — I really enjoy helping people get started in private lending.

Usually 15% at a minimum but 20% is much more common simply due to pricing.What many people do is live in a house for a year or two, then convert it to a rental property when they buy another house to live in. 

I suspect your insurance number is low. 35 to 45% all in costs is pretty common if you have 3rd party management. keep in mind cash flow on top of all cost is only one component of the investment and in my mind not always the most important unless your buying in an area that is depressed and you think values will be stagnate for basically the life of the investment then positive cash flow a very important factor. 

It's a common misconception. 

Thanks Stuart for the detailed reply, this was my second investment on Real Estate, I was referred by a member whom we are in common forum of IT Staffing Business.

The concern from the secondary capital markets lies in the following: Residential assets are appraised as, and commonly zoned as, their highest and best use.

The common theme is the audience doesn't know to ask "how" or "why" before making their purchases.At this point, I am genuinely unsure what kind of messaging actually cuts through and captures attention, and more importantly what convinces investors to pay for proactive advisory services rather than waiting until a problem or realization event forces their hand.I used to spend about 10 hours a week consulting with investors across the country on proactive asset protection systems.