B grade area and good schools.I think property 1 will be easier to get under list price but not sure of vacancy rate since it's a smaller town.

Quote from @Bill B.: If you’re talking about paying over asking or having a larger downpayment: Those aren’t  expenses.

@Bill B.1) Home is worth $220k now, principal balance on loan is $179k.

While I don't own a STR (but am contemplating it) I have rented via Airb&b & VRBO for years.

You can tell the fab is not high end but it is good enough for up to class b rentals.  

After 2 to 3 years, depending on where interest rates may be then, my partner and I can then look at refi opportunities and at that point, hopefully the property has appreciated somewhat, such that we can then pull out (a. the private loan, b. the downpayment we both put in and c. plus a little bit of capital gains)....

They kept getting rejected b/c sellers were hearing every night on the news about the blistering hot real estate market that had turned around and they suddenly wanted top dollar for their property, above what comps would justify, even above asking price.

@Tsedey B. 

I actually am only looking at resales that are currently managed by MSHB b/c I have not found another PM company that comes close to meeting MSHB.I've had one tenant for 12 years, I feel like at MSHB they different areas (maintenance, current leasing, tenant retentation, etc) really talk.I'm currently dealing with a nightmare with another PM company.

Do you want to give your money to those who choose B or C?