@Bruce LynnThey could but in reality it’s not the actual federal govt employees that are the biggest factor it’s all the lobbyists and government contractors that flock the area.Every large company has a contingent of people here to grease the pockets of all the politicians

Key factors include your experience level, credit score (600+), down payment (10-30%), property appraisal and ARV (65-70% of ARV), project scope and budget, exit strategy, cash reserves, market conditions, and lien position.

When I started, I wanted to leave my small business to pursue multifamily full time, and I did not have the time to fix and flip or buy a few single families scattered around.Those factors led me to start with multifamily.

Other factors to consider are what you plans are for the future (value add rehab, restructuring, selling the property soon, etc) and whether or not there are any events on your personal horizon that may impact your ability to refi later. 

All of the factors will keep you from cash flowing.

Examples are as follows:5-4-3-2-1 (Stepdown in %)Flat 55555 (5% for all 5 years or 3 years (5-5-5)6 months of interest pmts on 80% of the loan balance (hybrid penalty)your PPP choice directly impacts your rate and DSCR so be sure to weigh out these factors altogether. 

I would argue that the MOST IMPORTANT factor for success will be a boots on the ground team that knows the STR market in and out.

Of course, many other factors have to line up to be a good deal.OTOH, if $2.5 million is 100% of the cash into the deal, 75% of the equity is much too little.  

With most furnished properties renting for more than $2,500, MTR seems to be a way to significantly increase cash flow.WeaknessesEnsuring that the property is continuously occupied will largely depend on factors such as the unit, its location, furnishings, and related marketing materials.

If I factor in the cost of furnishings and initial repairs CoC is closer to 30%, although may be lower than that.