Hey BP community 👋I’m based in Chattanooga, TN, and I’m looking to connect with investors focused on Short-Term Rentals (STRs) and event venues—especially those seeking unique or underutilized properties with upside potential.Over the past few months, I’ve come across several off-market deals in and around Chattanooga that I passed on at the time, but I’m realizing they could be perfect fits for STR or event-focused investors.

The part I'm less sure of is how to do the accounting for the repayment.

Hi @Zaid Akrem, You’d usually return his initial investment as a capital repayment, that part isn’t taxable.

That’s why most people prefer to take a loan against their 401(k) instead—it doesn’t trigger taxes or penalties as long as you repay it on time.

Unless you have the funds to repay the HELOC (in which case, why aren’t those funds loaned out too?)

How can you guarantee repayment?

I'll look more into hybrid/segmented special assessments.You'd think lenders would be mostly okay with these, since while it's true that only a portion of the units are responsible for repayment, the loan amount itself (their risk/skin in the game) is lowered by the same factor (slashed in half in my case).I know this is silly and I probably won't go down that route, but part of me is thinking, "I'll be the lender myself - I'll give them a less predatory (but still win-win) interest rate - if anyone has to collect interest here, why not it be me?"

Each renter/buyer is unique and will require specific attention to their unique situations including income, credit, equity, seller credits, Rent to own credits or premiums.

As someone who have worked with a lender before, Private lenders typically look for solid numbers (purchase price, rehab costs, resale value), a proven track record (especially in similar projects), a clear exit strategy (how you plan to repay), and risk mitigation (contingencies)

Its another unique way of offering max leverage while mitigating your risk.Not saying its entirely on the lender's side either, seeing lower appraisal values, I think in part, because of higher rates throughout the year so the price of recent comps are lowered from the last 90-120 days creating a unique environment.Definitely takes a little more work on the front end to make sure your comps are solid.