Our "lenders" are family who will lend to us a 25% down payment on the first property we buy at a rate comparable to a high interest savings account, so 4-5%.

@Julie Hill 2-3X returns compared to long term rental?

The cost of living is extremely low compared to other cities and you can still many many positive cash flowing and 1% deals here.

What I don't see mentioned on this thread (and also pertaining to a "recession-proof" STR), is how does your property compare to those around you?

In most cases, when you assume a mortgage say for example with a 3% interest rate you can save tens of thousands of dollars per year in monthly mortgage payments alone when compared to loan written with todays rates!

Initial returns may be lower compared to flipping, but more stable.Considerations for Both Strategies: Market Research: Thoroughly research your target markets.

@Miguel Suarez We’re so committed to the Metro Detroit area, we created a "Deep Dive" series here on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider: https://www.biggerpockets.com/member-blogs/3094/99854-deep-dive-into-metro-detroit-cities-ecorse We're not aware of any other property manager, agent, turnkey provider, flipper or wholesaler that's made the commitment to do this!

In fact, I am currently reading the book specifically on small multi-family units which has its own uniqueness compare to large units.

Even if you go the private money route that you mentioned (which also makes sense) - I'd advise speaking to a few HMLs at least to get comparable "market terms"

Compare what you see to the deed etc - there could be a shared driveway or some other easement.Also if the building is occupied you will be dealing with an eviction as well so you will have to factor that into your costs/bid.