If you want to solely use your own funds you could do that, or are you wanting to maximize your balance between using your own capital and the money from capital sources?

Ideally, finding a lender who offers a balance of both is key. 

Quote from @Michael K Gallagher: we've generally seen a more balanced market here in central OH. 

In PCB and Destin, though, the balance between property prices and potential rental income is much better.

The actual penalty varies but it's often a step down or if a 5 year prepayment penalty term, it will be 5% of the original or unpaid mortgage balance if refinanced or sold in the first year, then 4% in the second year and then on down (the exact penalty varies which is why I mention both the original and unpaid mortgage balance.

The idea is to find a pocket or neighborhood that offers the right combination of estimated ROI and rental demand, giving a balance of cash flow and tenant demand.In my view, this approach provides a more reliable signal of demand than relying solely on pricing adjustments or short-term market trends.

We have a balance of 266K on the mortgage @ 3 percent interest.

Sure you could do a money market or put it in an ETF or something, but this is one of the options where the balance "can't" go down or is extremely low risk while making a decent yield.

A shorter minimum stay and dynamic pricing are great for attracting bookings during slower periods, though the trade-off with single-night weekend stays is definitely a balancing act.

Ideally, I'd like to find a balance between affordability and potential for appreciation.Also, are there any common pitfalls or things to watch out for when buying a multi-family property in Jersey City?