Exploring a combination of these strategies, such as using a HELOC for a down payment and securing a DSCR loan for the remainder, could help you achieve your goal of purchasing additional properties this year.

Option 1: 1031 into another STR, target price $1.1-1.4m.

Now, it is more targeted and has to be designed and run very intentionally.

I target working class hoods.

The challenge we now face is whether to keep targeting smaller multifamily properties due to the historically low interest rates and very favorable loan terms or look for smaller commercial (roughly 10+ unit multifamily) properties even though the financing is not as favorable (at maximum will need to refinancing by end of year 10) and cap rates are extremely low? 

That being said there are also bad deals in any area, here included.I would run your numbers based on historical data from airbnb - pretty easy to check on airdna or even just going in the airbnb app and seeing not only what nightly rates look like for certain properties but what their occupancy is - from there you can estimate monthly revenue with a reasonable degree of accuracy and see if that lines up with your targeted returns.

So, keep in mind your market and what your target property result looks like in that market. 

If you can't achieve those rents, you may be able to reface the cabinets, and paint the boxes.

They could sell and re-deploy that capital somewhere else where they can use leverage and achieve a much higher return on their equity. 

Or primarily for sufficient capital for down payment and obtaining a new DSCR or alternative qualifying loan for the target acquisition.Although there are alternative income qualification methods for fixed second loans and HELOC's utilizing bank statements and even DSCR rental income, as the lender risk increases, generally so does the borrower's interest rate.