It is better to even be slightly cash flow negative in year one with a quality asset than to buy in the hood and find out that your xls spreadsheet did not tell you the whole story..

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Would the person who takes on more labor to repair the property have greater preferred equity or is this usually treated differently?

More than likely the asset will in a location where cap ex & management/operational costs are disproportionately higher and therefore your expense ratio will also have to be adjusted to a higher number.  

Ken, I would prefer to do that, but I wasn't sure if any banks would offer that type of loan or line of credit.

Mulit family assets likely will preform better than single family in this case because of rent ceilings, but in my market, finding a solid MF deal with enough equity is very cahllenging.

But if you want to use it, then an STR may be your preference- but to be profitable, you would need to have a large down payment.Aloha for now!

You certainly want to vet your property manager to ensure they are focused on balancing asset protection with tenant satisfaction.

My preference is to prioritize longer bookings and STR in the gaps.

This allows the owner to “write off” the value of disposed assets immediately, rather than continuing to depreciate them.