First Time STR analysis

[Shannon Leckinger]

Hello!  First post and long time listener. I think I know the answer to this question already, but want to make sure I am not missing anything (plus I am still learning). We evaluated 2 properties yesterday.  Both will come in about -$14-16K annually, have a cap rate of 3.7%.  If we are losing money every year, but do plan on holding on to it long term, with our goal being appreciation of the market and someone else paying a good chunk of our mortgage, is this worth doing on any level?  I know we would see tax savings too.  Feel free to dumb this down for me, I want to learn and have had this goal for a long time.  I'm just not sure if I have analysis paralysis etc.  The other part of this is that in addition to this, we are borrowing from our home equity line of credit to put down the 20% deposit- so we have that payment too.   Price of condos we are considering are $465-$475k and they each bring in about $35K annually.  Thank you so much in advance!