Most likely with the Fed cutting rates, at least historically, the rate cut has led to a recession which usually leads to lower interest rates in an effort to jump start the economy.

Purchasing the primary for 3% down first will lower the risk of running into DTI issues since you can use a no-income product for the investment later. 

Myrtle Beach and its adjacent beach communities are great options for STR, with much lower price points than places like Folly Beach and Isle of Palms. 

Obviously,  your cost of entry will be a lot lower out of state compared to Hawaii. 

So, suck it up and pay the extra X or move to a lower " class" area where the FMR will be lower.

@William StromGenerally speaking condos can have higher HOA fees compared to Single Family Homes, so this can sometimes translate to less appreciation, but that can also mean a lower purchase price, so you can sometimes get better cash flow on a condo.

The 20% down with a conventional loan also gave you a great start with lower monthly payments, which helps when maximizing rental cash flow.Regarding the lesson you learned about letting the seller take advantage of small asks, it's a common challenge for newer investors.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

If they have a lower credit score or there are other flags than we charge them last months rent also.

That being said there are also areas in Suburbs I would avoid like Norristown and Pottstown due to their nature (class C or lower).