Hong Kong both chance for cashflow and appreciation.  

This is why is is extremely important that you use local resources who own STR's in the area or manage them at a bare minimum.

Haven’t had a chance to research STR permits in Sac yet but writing offer for a unit today.   

Getting a lot in equity, barely anything in Cashflow.

Was the 1st bank you went to NBI by any chance?

There's a good chance the issue(s) you face has already been discussed and answered.Ask questions in the appropriate forum.

Chances are they are "more knowledgeable" that others in that niche.

@Zach Denny - I agree - chances are the institutional lender won't be comfortable with an owner-financed 2nd and 100% combined loan to value.

Would say there is a 5% chance rates will go to 3% in the next 20 years.  

The program is neither good nor bad, there's just different pros & cons compared to cash paying tenants.Have offered to schedule a call with you numerous times to try and assist you, but you seem to prefer posting & posting & posting - which will take so much longer:(What are the chances you'll actually invest someday, given how long it's taking you to do basic research?