It’s great that you’re doing your research before diving in, the STR landscape here definitely has some nuances.You’re right — the current city regulations technically restrict non-owner-occupied short-term rentals, but in practice, enforcement has been inconsistent.

For a 506c they technically do not even need a PPM.I think many investors do not realize this and the risks that are involved.

. — collectively dropped 1.5%, though monthly growth turned positive starting in April, suggesting these markets may have bottomed out.Press enter or click to view image in full sizeThe Supply Crunch AheadWhile prices recover, multifamily faces a different challenge: strong demand is colliding with the slowest construction pipeline in nearly a decade.Cushman & Wakefield’s Q2 report reveals more than 116,000 units were absorbed in the quarter, bringing year-to-date absorption to 216,000 units — matching last year’s robust performance.

Challenges?

We’ve been seeing developers tap hybrid lending models — mixing bridge and private funds to move faster while keeping leverage strong.Would love to hear your insights — how are you all navigating funding challenges for new builds or commercial deals lately?

I am here to learn at BiggerPockets, but need to challenge myself to take more risks and start investing. 

See the chart from Fair Isaac Company (FICO) below: FICO Score Pct of Population Default Probability 800 or more 13.00% 1.00% 750-799 27.00% 1.00% 700-749 18.00% 4.40% 650-699 15.00% 8.90% 600-649 12.00% 15.80% 550-599 8.00% 22.50% 500-549 5.00% 28.40% Less than 499 2.00% 41.00% Source: Fair Isaac CompanyAccording to this chart, investors should use corresponding vacancy + tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure.

See the chart from Fair Isaac Company (FICO) below: FICO Score Pct of Population Default Probability 800 or more 13.00% 1.00% 750-799 27.00% 1.00% 700-749 18.00% 4.40% 650-699 15.00% 8.90% 600-649 12.00% 15.80% 550-599 8.00% 22.50% 500-549 5.00% 28.40% Less than 499 2.00% 41.00% Source: Fair Isaac CompanyAccording to this chart, investors should use corresponding vacancy + tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure.

What challenges or wins have you seen in this niche?

Markets change, lenders shift, and investors have to adapt.I’ve been hearing that some deals are stalling due to tougher underwriting or liquidity issues.What’s been your biggest funding challenge lately — and how are you overcoming it?