People would need to know how much you have to invest in either project, where you are, and what your appetite for risk is.

No one can answer unless they know your price point, appetite for renovation if needed, whether you are looking for turnkey, how you are going to manage, etc.

.* And for low performing properties one of the features i really like is you can make a change to your listing - lets say update the property description, log it, then see if this makes any chances in your placement.I'm not affiliated with them but think its a great tool to turn around poor performing properties - assuming the STR is competitive compared to your competition.I agree with Henry that you can probably do better self-managing IF you have the time and appetite for dealing with guests and learning the dos and don't....Heres is the turnaround of one of our Floridas STR that was lagging - now back to near the top on the first page.  

The price of 2 BRs is going to fall drastically and the buyers (who are mostly investors) will buy the 2 BR on the cheap, suppressing the demand on 3 BRs and creating or worsening the oversupply there.Of course, like everywhere else, there are still some ST rentals that are operated at double-digit returns but isn't the best predictor the overall figures you can find on Airdna?

Hi Edward,It really depends on your risk appetite.

Lastly, the demand effect may even be more acute today than in a “normal” market because high interest rates have suppressed supply of available homes. 

I thought it would depend on bank appetite but I've heard back that vacancy isn't an issue so long as the property is self sustaining as is.I think there's a fine line between filling an open spot and resurrecting a dying center though.

If you want a restaurant in there, typically, as the landlord, you are footing the hood system, walk-in cooler/freezer, fire suppression and overall fixture work for the tenant.  

Do folks think the rent decreases at the large multifam properties will eventually suppress the rents on the single fam and small multifam properties?

Investors I work with from the Bay Area have a large appetite for MTR as our supports it.