How to build a RE portfolio faster; STR/MTR, or LTR?

[Michael Rendon]

Hello all, I wanted to open up a topic for discussion that has been top of mind for me lately, which is if your goal is to attain a RE rapidly, should you go STR/MTR or LTR?

I am a little mixed on the topic as I can see pros and cons to both routes when it comes to building a portfolio with speed. I currently own two STRs, they cashflow higher than I would expect from a LTR, and this helps to get funds for the next purchase which is primarily why I chose this route. This high cashflow is great, but it is being countered by slowing down my ability to get more financing for my next purchase as I typically need 1-2 years on a tax return to get rental credit from said STR when qualifying with a lender for the next purchase. This now has me considering a switch to LTRs for future acquisitions, since typically you can just provide a lease to the lender to get rental credit.

Curious to hear any and all thoughts on this topic, are there other options I should be considering altogether?