Thanks for the feedback; some quick stats: 9 doors across 4 states, about 50% LTV ratio with a Net Income of about 17% and cash on cash of about 3%.....in fairness those numbers include some overall business expenses not tied directly to one specific property.

I have been digesting all things Real Estate so right now I am working to lower my DTI while saving at least 6-7% for the Owner Occupant down payment (to include closing cost, etc.).

In your situation there is actually another factor that may work in your favor.Only the proceeds allocated to the sale of the building can be used in a 1031exchange. 

Brad's group is based in Dallas, but his students live in and are buying in many states, including Arizona, so if you think you might benefit from such a program, don't rule it out based on your location alone. 

I think another factor here in determining whether its a good investment is your age and your goals. 

From my understanding, as long as you intend on doing a STR when you close, there are no rules against changing your strategy after closing, especially if you find that something else is more profitable.So in our case, the lender determined an STR would bring in ~$3500/month (with all of their conservative factors), but now that we operate it as a huge 3300 sqft Co-Living property, it actually brings in $7000/month.

Are there specific factors you look for in an area to make sure it’s a good fit for this type of rental setup?

So eventually this negative cash flow property becomes cash flow positive and pays for itself including property taxes, hoa, mortgage etc.Trying to calculate how bad is my investment here or should i sell out if there is appreciation 

Focus on learning the basics of MTRs, including their appeal to traveling professionals and the need for furnished properties.

Many billionaires and celebrities own property there, including lots of Americans.The infrastructure is top notch.