Being listed on multiple OTA allows users that use alternate OTAs to see your STR and could provide a higher ADR even if you end up lower ranked of the OTAs.Basically it comes down to having all your eggs in a single basket and is too risky for my liking.i am one of those STR owners that corrects anyone that refers to my STR or STR business as an AirBnB.  

i agree that a new purchase at 75% equity will typically not have significant cash flow and may even be negative when properly allocating for all expenses.Investing to max equity without reserves is risky and you indicate would result in stress.  

Some people seem to get locked in to one place they find, or a place a friend or family member is selling without really evaluating the available market.In a small town in East Texas I would think your biggest risk is a big player coming to town that can absolutely crush a smaller player. 

But my question is, why would anyone invest in real estate if the return is the same but the risk is higher?

Only large corporations can withstand this kind of risk. I

The fact of the matter, as @Jay Hinrichs said, is that it *is* an either or proposition at least in the season of growth.

Going into the unknown and buying multiple SFHs/duplexes or an apartment complex OOS and my property taxes will skyrocket (property tax is reasonable thanks to Proposition 13 in CA).

It becomes risky if you buy an investment that won't pay you back in year one so having a strong buy box and knowing your numbers is key!

Do you make any decisions as to the value-proposition offered the tenant.

A good friend of mine recently managed to pick up a modest duplex outside Phoenix that looked risky at first glance.. low rents, older neighborhood.. but with a few smart upgrades, it became a steady earner in under a year.You mentioned your worries about remote investing and the challenges of managing properties from afar.