From what I've been reading, cap rate is not a reliable metric for STRs.

The spread between what they're paying and what the market rate indicates is not that much.

There is so much that goes in a business, rental rates, rental tax, inventory,  job costing, payroll, business analytic reports etc, QiuickBooks does handle what I have mentioned here. 

The environment now with higher interest rates and higher purchase price does make it more difficult but definitely doable. 

With rates coming down should help some sellers off load over priced properties and will help buyers get aggressive with good class A and B locations.

**Maintenance**: Be prepared for a bit more wear and tear compared to market-rate rentals.

The reality is that with the super low inventory we have sellers don't have a reason to give you a 50% discount, so your numbers get squeezed and you will end up leaving cash in the deal.

I have a condo in Connecticut that generates a cash flow of about $750 a month, and I have approximately $130,000 in equity at a 3.25% interest rate.

 @Jessica Frisk I would not be keen on the 15-yr fixed rate mortgage if that makes you cash flow negative.

For your $2M property, a cost segregation study estimates $316K in first-year depreciation (compared to $28K with standard straight-line), potentially saving ~$117K in taxes at a 37% rate.