I am of the opinion that the best STRs are properties that don't compete with hotels - meaning that they are 4-5 bedrooms for large groups or have a unique location/setting. 

To give you an idea of what taxes look like on a sale below is an example for a property in Texas, obviously everyone's situation is unique and you'll need to meet with a CPA. 

Quote from @Fernando Martin-Gullans: Hey y’all, I’m a retail investor with 2 SFH rentals worth a combined ~$650k looking to utilize some of my stored equity to buy more out-of-state properties, but I’m not quite sure how best to proceed given that my interest rates are incredibly low (leaning me away from refinancing) and neither property is owner-occupied (which I believe prevents me from using a HELOC).

You tailor all this according to your unique needs.Real talk: How are you currently balancing your W2 and REI activities?

Taylor has extensive experience with investment properties and creative financing solutions, and he’s great at finding options tailored to unique situations like yours.If you’d like, I can share his contact info or make an introduction.

Most of my client's combine doing short term and mid term rental strategies with their Arizona properties. 

Now let's say I find a triplex that covers the 1% rule but combined cash flow from all 3 doors is roughly $150-$200 or would you want to keep it at $150-$200 cash flow per door with the 1% rule applying? 

But after working with the family, we purchased it for $42,000 and got to work.We had some unique challenges, like dealing with one of the heirs who wasn’t very cooperative and required a payoff to sign the paperwork we needed for clear title.

@Matt Powers there are endless possibilities and combinations of how you could approach this opportunity.

Highlight the property’s unique features (off-grid, sustainable) and the area’s growth potential to show long-term value.