where is this located? 

You'll be extra fine if you only buy in good locations where tenants want to live. 

I would suggest going local first, if you can't locate a local lender that meets your needs, try the DSCR route.

If you can spend 250-325k, you should think MTR, not STR, because that is more likely to scale in any area because of all of the different types of renters for MTR compared to STR, which is more location-based and amenities-driven.

We have an airbnb in PHX and winter is our best months of the year so it really depends where the property is located. 

You have any good thread reads and location suggestions for OOS? 

Is it realistic to pass material participation test if the property located far from primary residence, like vacation rental?

Not sure what the layout looks like or location - but in a solid location, which I'm assuming since it's an STR, you should be able to in the ball north of $800-1000 per room and even more so for the rooms with private baths.

Lots of people on here have great advice regarding location. 

There won’t be a ton of supply, so you should be able to get an idea on locations and pricing fairly quickly.