The biggest anticipated buyer hurdle on the horizon is a significant drop in mortgage rates that would force a flood of sidelined demand to come into play. 

Cash Option Leverage Option Mortgage Amount $0 $400,000 Down Payment $100,000 $100,000 Initial Property Value $100,000 $500,000 Number of Properties 1 5 Monthly Mortgage Payment $0 $2,027 Monthly Rent Received $800 $4,000 Rent minus Mortgage (monthly) $800 $1,973 Rent minus Mortgage (12 months) $9,600 $23,679 Holding Period / Investment Horizon 5 years 5 years Market value growth rate 5.00% 5.00% Terminal Property Value at sale $127,628 $638,141 Total gross rent received (5 years) $48,000 $118,396 Cash from sale + total gross rent $175,628 $756,536 Which seems like a better deal?

While appreciation is not in the next 6 months it certainly is on the horizon in the years to come.

There are still a good amount of buyers of small multifamily because they can afford the longer time horizon with their investment.

Reserves achieve the same outcome, but a lot of folks are bad at actually hanging on to them (but yes, you do need them).I also expect there to be some good deals on the horizon with anxious sellers over the next 6-24 months … so be patient and buy great deals, they are comingGood luck!

If your time horizon is 3-5 years, I would consider buying your primary property in an area and with features you prefer for yourself, rather than a less desirable home in hopes to STR it.

If you're leaning towards a longer investment horizon, pressing for an amortization schedule that mirrors your financial projections is prudent (Again, look at the cash flow).

First Republic - CaliforniaFremont Bank, CaliforniaFulton BankGFA Federal Credit Union 10 yr draw, 10 yr repay, MAGranite State CU, NH 90-100%Great Lakes Credit Union GTE Financial, FL w 2 yrs tax history on propertyHanscom FCU, FloridaHSBC 70%, for premier clients only Horizon, Kalamazoo MichiganHuntington 75% LTV 5 yr IO product available.

First Republic - CaliforniaFremont Bank, CaliforniaFulton BankGFA Federal Credit Union 10 yr draw, 10 yr repay, MAGranite State CU, NH 90-100%Great Lakes Credit Union GTE Financial, FL w 2 yrs tax history on propertyHanscom FCU, FloridaHSBC 70%, for premier clients only Horizon, Kalamazoo MichiganHuntington 75% LTV 5 yr IO product available.

FL, NY, MD, CA, VA, NJ, Horizon Bank, Kalamazoo MIHuntington MI 75% LTV 5 yr IO product available.