$200k to deploy: build new STR 1BR or better ideas?

[Bryan H.]

Hey there folks!

I'm under contractor on a lot to build from scratch a design forward 1BR house for STR use. All-in cost will be $375k. This strategy is all about beating the competition with eye catching architecture, so not interested in rehab/renovation of other local housing stock.

I have done this twice before in my area with great success, but this one's going to cost me a lot more for a lot less return than the previous two.  

Here is 3 scenarios: conservatively projected low/medium/ and scenario 3 is actual recent net returns  (unlikely repeatable right now) 

I'm looking for alternative ideas to deploy $150-200k down payment on a much larger investment than a 1br house, so I can play the appreciation game as well as the income game. The catch is....I do need around $35k or more net income from whatever I'm able to purchase. 

Is this realistic in some other market? In theory I can buy a $1m property, but I've never seen one that pencils out with any decent cash flow.