Doing a short term rental in a separated area that has its own designated, kitchenette and bathroom, would likely give you better returns and less headache.

On top of that, they require homeowners to hold the title for two years before being allowed to use the property as a short-term rental.

The cool thing is you have multiple strategys and just because you choose one, does not mean you cannot switch to another one - maybe one fits your short term goals and another one helps down the line with long term goals.

Sign an agreement for a period of time that can be as short as one day.

@Bud Gaffney  short for Medium term rental,  or mid-term rental. 

Without this, it’s tough to calculate a realistic cash-on-cash return or DSCR (Debt Service Coverage Ratio).Condition of the Property: Are there any deferred maintenance or capital expenditures needed in the short term?

I’ve also taken out short term loans (1-5 years) to use as my 25% down payments.

The short answer is yes to MTR in multis, being respectful of the other tenants and the allotment of LTR, MTR, STR of the units.

But the short answer is this:   You're on the right path. 

Without adding creativity like: room by room renting/padsplit, value add/larger cash down, mid-term or short term renting, etc it's just how things are.