I've narrowed down the best return for my money in this market to a 2 bed/2 bath (with top tier amenities) - about 500 total 2/2 listings.I'm finding myself a bit stuck when analyzing why certain properties are making so much higher than the average listings when they seem to have very similar locations, amenities, style, flow of home, beds/# of people they sleep, reviews, number of reviews, etc.

It's a great way to increase your net worth and these loans can also be used to pull cash out of a property as it appreciates allowing you to reinvest money into new deals.Happy to connect to discuss further. 

Instead I want to take advantage of the opportunity I have of living rent free to invest my time and money in STR's to hopefully build that portfolio up and eventually make that my main source of income (I understand that will take time).

I mean really robust and to us the money is made finding those pearls of land that can be developed

Their property sat vacant for a few months while their guy "saved them money".

So they would first payoff the first mortgage, if there is a second then $ goes to the second and if anything above that goes to any other lienholders or the homeowner.There are a lot of people who invest in 2nd mortgages because they are cheaper than a first, but in Ohio (not sure all counties) you have to pay off the first at foreclosure so if you do not have the money to pay off the first you are out of luck. 

Two other things to note about #401kloans:Possible benefit if the stock market turns south, the money outstanding against your 401k loan is no longer invested into the market! 

He scammed a lot of people out of a lot up-front of money.

Revenues get low he just sends em out to do a random "unit inspections" to churn some more maintenance money. 

But to answer your original question - either hard money or a traditional mortgage can both work.