But if you look at Return on Equity (Net Income/Proceeds after sale) it might illustrate a lesser return and could highlight opportunity costs of not investing in a different asset type or location.

Gas is another way to illustrate this.

(These are all assumptions simply for illustration, they may or may not be true.)

A quick example:Property A currently on market3br/2ba$565,000 (it likely goes for 10% over ask, minimum, but for our example, let's stick with asking prices)$2,764/mo principle, interest, taxes and insurance (assuming 20% down and a 5% interest rate)$4,665/mo gross revenue (according to AirDNA, the STR rent estimate tool)-----------$1,901 cash flow (we're not accounting for any costs, obviously, but this is just illustrating the importance of bedrooms)Same Property (just two more bedrooms and one bathroom)5br/3ba$750,000 (again, it likely doesn't stay at this price)$3,669/mo all-in payment$7,671/mo gross revenue (according to AirDNA)----------$4,002 cash flow (again, no expenses)Basically, for an extra $900 in monthly payment you get an extra $2,100 in cash flow. 

Maybe this link can illustrate why it is so confusing: https://www.irs.gov/businesses...

Ask your agent for an inforce illustration at current interest rates and if you borrow 50% of cash value, how long until the policy lapses, and there is no more policy.

Below is an illustration showing what you are also buying.Tenant pool demographics - Every property is only desirable to a narrow tenant pool segment.

(And I just took the risk of posting this, to illustrate.)

These are of course made up extreme examples just to illustrate the point. 

I steer clear of HOA properties for what you have illustrated so well.