The bank might want it back if things really go belly up. 

If you really want to juice your returns, you have the freedom to respond to guests within an hour of receiving an inquiry/question/problem, you’re willing to deal with more hassles and dedicate a few extra hours a week to launch an active biz go STR.If you don’t need to maximize your COC returns and you don’t need extra hassles distracting you and interrupting you from your current work, at dinner time, etc and prefer a more passive investing vehicle then go with LTR.

Pros:-You have funds lined out-It forces you to have a plan and stick to itCons:-funds are released in stages-the communication piece in this can be daunting for a newbie with the back and forth between issuing bank, contractors, and your own family throughout the projected timeline and ensuring monies get to everyone at right times.I’d say, the juice is worth the squeeze, but just know it’s gonna be a pressure cooker in experience and growth that you probably weren’t bargaining for.

Hey my name is Matthew Bell I am completely new to real estate and I really do not know where to get started.

You simply have to deal belly-to-belly with your tenants in this property class if you don't want to make your life hell.

It’s a little more work and it’s more active but you can juice your returns and increase your income more quickly.

With you paying it, they might consider it a challenge to bring the electric bill up to $20, $40 or more, and believe me it wouldn't be that difficult.Is it one of those setups where the extra juice is charged back to the electric company?

Is the juice really worth the squeeze (asking for a friend)?

This in itself could be a very important consideration for an investor.Character : There have been many business owners or real estate operators over the years with experience who have gone belly up or been involved in illegal activities even.

Granted, there will be other financing terms that will juice up your return: interest only and longer amortization.For Los Angeles, the play would be value add/opportunity driven.