Does anyone have experience purchasing a 5+ unit multi-family building for the sole purpose of operating it as a short term rental?

Its solely a promissory note.

@Dennis Boettjer be careful about basing your decision solely on past deal performance.

You always invest for appreciation not solely, you always invest understanding it's a physical asset and requires different risk measures.

Now I am wearing the other shoe and it’s nice.

either where you live, or a couple hours from where you live, or where you have family, or where you like to visit, or where you went to college, or whatevera lot of times choosing a market based solely on ratios or numbers goes poorlyhope this helps

If I am in your shoes I would buy 2-4 units, get a conventional loan, ask the sellers to pay for the max contribution (3%) towards closing costs.

Is it solely related to flippers wanting to keep costs low? 

There's nothing wrong with renting for a year, getting your shoes on the ground, and learning more about the market. 

To think short term on these interest rates and terms if the numbers work...You are crushing it and your sole focus should be growing...often there are short-term sacrifices for long term growth