You must occupy the residence within 60 days of closing and live in it as your primary residence for 12 months before renting out other units.Do this several times and you will have 3-4 performing (hopefully) 4 plexs (or tri or duplex) and then you can look at doing STRs.It would create a great base for you to work towards early retirement. 

Buy in a good location and have multiple strategies should STR not perform as anticipated.

I have a few case studies on my site (and YT) that you should check out.

Most people outside the profession don’t understand the time and capital it takes to make a project come to fruition.Before a single piece of equipment touches the ground, there are years of government meetings, environmental and site assessments, engineering studies, etc.Each step requires significant time, effort, and capital investment.But when done right, it creates a ton of value and transforms communities, which is why I love it.

.- Investment Lock-Up: While there’s a chance your funds could be tied up for a bit, if the property is well-designed and in a desirable area, you might see appreciation that allows for refinancing sooner than you think.Buying an existing property:- Less Risk: Existing properties come with a track record, so you can analyze their performance and potential more easily.

I'm in the retail sector, primarily value-add product with a great location but poorer performance than the market average.

My vacation rental performed really well during tourist season, then poorly for the other 6-7 months.

For example a DSCR (debt service coverage ratio) type loan looks at how a rental performs to determine how it qualifies for a mortgage.

It produces useful reports for various properties.Cons:   They over promise and under perform on virtually everything.  

The biggest "risk" is them performing, because at end of term that means they complete purchase of property.