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.

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. 

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.  

From my experience, these factors are the secret sauce for a long-term growth investor.My family absolutely loves the city, and we are fortunate to call it home.

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

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.

No General Contractor wants to do a remodel with the residents still living there....they will charge you more (they probably will not show it, but the prices will be higher because of the huge PITA factor and increased liability)I would wait until you have completely moved out and then just give them the house empty and ready to roll.....But you can get a Scope Of Work going and start getting bids...even plans and permits if you're going that far...

Returns on cash invested will be huge when you factor in the appreciation gains.

Cash flow is a huge deciding factor in the next deal.

A hypothetical to see how people factor costs when rolling equity forward into additional purchases.For this example assume  you purchased property “A” for 100k, and put 25% down. 2 years later you sell it for 125k so you now have 50k (25k from your initial down payment + 25k in equity).