I agree that cap rate would yield a lower price than even $450K. 

Loud neighbors, a poor location, and poor floor plan could mean a constant uphill battle to keep guests happy, and likely a lower ceiling for guest review scores.  

That’s why I wanted to use the equity and then only owe the $153k to lower the payment and refinance later.

If you didn't, seems like a bad / inexperienced accountant to suggest such a thing.In my opinion, its the same as telling someone to go to a trade school and get a new career.A STR can help you lower your taxes but I would only do it if you were planning to purchase a STR.A STR is a business, you are responsible for furnishing the house, responding to guests, providing a great stay and experience, etc

The lower level is being built out to house the third location of Arbol Eatery, a grab-and-go restaurant, along with a wellness center and event space.

The lower level is undergoing a significant build-out to house the third location of Arbol Eatery, a grab-and-go restaurant renowned for its fresh, flavorful offerings.

The lower level is undergoing a significant build-out to house the third location of Arbol Eatery, a grab-and-go restaurant renowned for its fresh, flavorful offerings.

The lower level is undergoing a significant build-out to house the third location of Arbol Eatery, a grab-and-go restaurant renowned for its fresh, flavorful offerings.

Based on your comments, you are at risk of  gravitating towards the lower tier neighborhoods where the spreadsheets will suggest cash flow is better but excel spreadsheets don't tell the whole story. 

Thanks for the straightforward reply, I don't have an interest in MTR's as I would prefer to buy more LTR's at a lower price point instead.