I always recommend to make even a little passive income from a rental after all your expenses, lets be honest you put a lot of effort into this rehab so you should reap a little return.

My goal is to diversify with an investment that generates steady cash flow, even if it requires a larger upfront investment and lower overall returns. 

Here's the deal: You don't need to withdraw and return the current security deposit just to collect the additional $100.

Thus, your return would be about 11%.

There are not a plethora of 'home run' STR's that are going to return in 2-3 years but there is significant value and definitely properties that will return 20%+ COC and definitely several dozen that are obvious values in their own right, and will absolutely carry all operating costs. 

I ask because as mentioned above if you have an investment that is  going to return 10%+ then does it matter what the rate is in the long run? 

Find an older one who'd rather sit back and get the interest than the higher return higher involvement of another flip.

Purchase price: $530,000 Cash invested: $100,000 My journey into short-term rentals began after years of investing in long-term properties, but it was a podcast that opened my eyes to the incredible potential returns of STRs.

Your rate of return was 13% versus the 9% return not utilizing leverage.  

I look forward to continuing that drive and build on the experience when I return to the US.