LTR vs STR as first investment

[Scott Deetlefs]

Good day BP community.

My wife and I are looking to invest in North Carolina. We are in the process of becoming permanent residents (still a 1 to 3 year process for us), which kind of limits us with regards to loan and financing options. 

We have been saving up for a down payment on an investment property, but we are at a bit of a crossroads with what step to take next.

On one hand, we want to get in the game as soon as possible and have considered getting an LTR property first, so we can begin to learn about the ins and outs of REI. We could potentially afford a relatively good property, we have about $50K to $60K towards a down payment (not great, but good). We have seen a few properties that are within our budget, but would obviously do some more thorough analysis on the properties before pulling the trigger.

On the other hand, we have been more interested in STR's since we planned to start investing in real estate. But considering we have to go with the traditional 20% down payment, we know we do not currently have the budget to get an STR that would stand out and have all the amenities that we would like to be able to offer and be in a great location.

So I would like to ask for some advice from all the experienced real estate investors on BiggerPockets.

Do we get in the game now? And could start making a small amount of cashflow and start gaining appreciation with an LTR.

Or do we continue to save up and get a better property in a good location with the amenities we would like to offer with an STR? Better cash flow, but not sure how long it would take to save up for something worth it.

Maybe I am overthinking it too much.

I know it is not as simple as I am making it seem.

So, any advice would be greatly appreciated.