I see 3-5 as a fad.Fractional ownership - way to much overhead for these to be profitable. think "timeshare".STR in non traditional markets - running a STR is a business and real estate, boils down to location location location - who would want to go to a conference and stay in a STR vs. the hotel where the conference is at, most businesses pay for this I do not see why.Mixed use with green - this has been going on for years- it will continue but it is also more expensive to build - which means higher costs to use.Not trying to be debbie downer, I have seen these attempted to be done in the past and they really have not been successful.I do really like the BTR model though as I continue to see that as a very good option in the future. 

Unless you have some sort of subject matter expertise or access to an unfair advantage (cheap labor, ways to source off market deals, etc.), index funds are likely to provide an equal or better return with a MUCH lower hassle factor and more liquidity.

Post construction appraisals for this model are coming back at $377k.

You get to show buyers the same models over and over and do not take people all over town.

You could do it your way but I’d recommend a bit of a hybrid model.

Model Units?

@Andrew Steffens the pool of buyers that have six figures of cash (you really need about $150k in cash to buy a $500k STR), have some subject matter expertise, AND want to self manage is even smaller. 

Sometimes even 7 or 8% lenders are had to find for 3 or 5 years much less for 15 or 30 years. exactlybut im sure its possible because people are doing it Possible yes, but there are a lot of complexities and moving pieces - this is generally the lending business model, not a simple "arbitrage" glitch or easy scheme..

It also sounds like they are not the ones actually doing the work, they are more a fund of funds model investing which there is nothing wrong with - just need to do an added layer of DD

A lot of times the contract period is actually when an agents expertise and experience is the most valuable to a buyer.