There are exceptions like expected appreciation, sentimental value, future plans of the city like redevelopment that may increase your value, etc... 

Love the sentiment.

This single trick allowed me to exponentially save into my next real estate deal and so on and so forth.I also agree with @Steve Vaughan's sentiment above.... agree with about 99% of Remit's advice EXCEPT him saying that renting is cheaper than buying. 

Cap Rate is nothing more than a yardstick to measure the current market sentiment. 

It really reflects broader market sentiment and economic conditions.

So I'd recommend thinking about who you want in the property and then determining the bed configurations and numberthank you so much, great things to think about: i hear others echo your sentiment not to count the sleeper sofa as a bed as much as a 'bonus' if people ask, so i appreciate this insight. i thought it might be okay, as it's memory foam with a topper, but ultimately i agree that it's not where i'd want to sleep.

@DJ Brooks,  My sentiments exactly :).

I understand everything said above and the sentiment people feel. 

The house is 100 years old and it looks like holey hell, to the point where the city starts to get involved and we (investors) get slammed in the news for running down neighborhoods generating a anti-landlord sentiment we really don't need.

Renting properties for STR does not come with the upsides of tax savings, appreciation, equity build up, etc.I agree with the sentiment expressed by others that diving straight into STR, especially with a property that is cashflow negative as a long-term rental (LTR) or through arbitrage, can pose risks.