Quote from @Christian Welch: This is something I always stress and make very clear:STR investing is not just buying a property and listing it on a platform for rent.A short-term rental is essentially a hospitality asset.It’s not a hotel or a motel, but it absolutely falls under the same scope — operating a business that provides both a service and an experience to the client.Like most hospitality assets, the majority of your costs come from:• Turnover and cleaning/ Preparing the unit for the next guests                                                                                                                                           • Restocking paper towels, toilet paper, soaps, towels, linens/ Stocking up all these supplies upfront• Ongoing wear on mechanical systems — HVAC, plumbing, appliances, water heaters, etc.This is why many STR owners choose to hire specialized STR property managers — firms that already have the systems, staff, and client base to book properties months in advance.

If we're assuming an 8% rate with traditional financing, and a loan of 500k, then:The better terms of the seller giving you 5% for 7 years is worth about 63k, and 4% for 5 years is also worth about 63k.

Using a traditional loan would be significantly easier of a process.

The house has likely appreciated considerably since 2018, so although she likely has a low interest rate, it still may make sense selling if ROE is low.If you want to keep the house as a STR, you'll need the following information: PITI, monthly maintenance costs, monthly PM costs (assuming you hire a PM), monthly supplies cost (toilet paper, paper towels, soap, etc.), utilities cost, capex (think things like replacing the roof), monthly cleaning costs, STR revenue, and estimated appreciation rate.Once you have all that information, you can figure out your ROE and make an informed decision.

Strong underwriting, clear default terms, and proper insurance are important so you’re protected if things don’t go as planned.If you value a clean exit and zero ongoing involvement, traditional financing has its advantages.

Traditional lenders don't really know what to do with this.

For fix and flips, short-term rehab or bridge loans can fund both the purchase and renovation and typically close faster than traditional financing.

I have about 75+ in my pipeline as well speak who are eager to sell, yet the traditional wholesale method will not work because their asking price is outside my MAO.

In virtually all markets, the high LTV loan on the refinance at market terms will create an initial monthly negative cash flow when properly allocating for vacancy and sustained expenses for traditional LTR.  

They are great if you are tapped out of your traditional Fannie Mae/Freddie Mac Loans.