Main question i'd ask is how much time do you have. as stated above, LTR is less time intensive but for your first deal, you usually will cashflow better on MTR.

BRRRR: can add a modular bedroom/bathroom/pool/hot tub to rehab, rent, refinance, and repeatIf I do this right, I think I can still use a 5% conventional loan, although I might be wrong about that? 

After a solid 6 month intensive full rehab and pulling all the cash invested out I like to tell my wife 'Hey look at all the free passive income we have!'

Sacramento is pretty hot and sellers are usually quite educated.

On our current STR Hot sheet for the Oregon Coast we’re showing about 100 active listings that are eligible for a vacation rental permit and nightly AirBnB rental usages. 

If you have not then going from never doing this to managing a more management-intensive strategy like co-living may not be a good idea.

He says he wants to fix it up himself and sell it because the market is hot in that area right now.

Hot water heater leaked and flooded downstairs storage area.

From there it's simply showing up, consistently, persistently, and no matter how feel showing up and putting in the work with intensity like youre there to get things done. 

.- Buying that first STR property in a “hot” vacation market that isn’t local therefore seems like one of the highest risk investments one can possibly make.I will not be surprised to see pain in several similar markets around the country, perhaps including certain desert locations that surged in popularity, certain lake areas, and the pain may extend to even areas like CO mountain towns, despite the fact that unlike the smokies, people do travel from all around the world and country to get there.