Starting with STR's or LTR's

[Mitchell Hamilton]

I've fallen into the trap many new investors fall into…analysis paralysis. I realize I need to just dive in and purchase my first property. I always assumed I would start with an LTR, however given the rise in interest rates and soaring property values, this might not be the best time to get in. Rather than sit around and wait for things to cool down, I've started exploring STR's. To me this makes more sense because from what I've read there is more cash flow potential in STR's which can help offset the rise in interest rates and property values. Finding a good LTR often times seems contingent on finding a great off-market deal. As a new investor (and maybe this is an excuse) I think finding a great off-market deal will be more challenging than ever especially since I'm new to real estate investing. Also, from what I've read, it's much easier to find a STR property off the MLS vs. a LTR that will actually cashflow. I'm coming to the conclusion that the best way to "get my feet wet" in real estate investing is to start with an STR. I would love to hear your opinion on this along with any pro's and con's I'm not considering. P.S. I do know a con is extra time managing the property, but right now I'm ok with that. Thanks for your advice!