I wasn't planning on going this big for my first investment but the deal, location and potential to value add was too good to not go for it.Thank you! 

You aren't necessarily building that much equity (cost of building exceeds the value) but it is a third option that is a hybrid.Another factor is location.

Now we're seeing investors pouring money into buying Class C rentals - but, many are getting burned.In our experience & opinion, the main determinant of property Class is not location or even property condition, those are #2 and #3.

Just, "that's the next cave" over.I joke because you live in the best of times to locate properties, all we had were cars and feet, to drive neighborhoods and locate deals.

By identifying the right buyer within our network and streamlining the transaction process, we added value without requiring extensive renovations.

Also keep in mind that many of these vacation locations have began changing enforcement and regulations for STRs so make sure to research a lot about pending legal actions and public sentiment of STRs in any market you want to enter and formulate several exit strategies to protect yourself in case there is a shift in the market there.

We bought a foreclosure and are living in it currently and are making it our forever home due to the location.

@Derick JenningsRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

If this was your current situation (paid off house in my location) and had less than stellar credit, what would you strategy be to scale quickly but sustainably? 

The house is located in a relatively nice neighborhood near universities and plaza.