I'm in the same boat for reference- I bought into the "buy now, refi later" idea and am sitting on a 7.375% on my latest property acquisition and a commercial line of credit I have is at prime + 1 (so 8.5%).

Those that could afford the huge mortgage bought a primary, built ADU and did STRs or MTRs in S.F.

Although I did buy 37 doors in two props this fall  but its the first time i tried MF  and it was unique circumstances.   27 unit we bought for at least a million under market so turn around refi pull cash out and let me partner run it.. 

About 90% of my coaching students bought properties and increased their net worth on average of $100,000 the year we worked together.

You make $10k from STR, you have to come up with $22k out of your pocket, not to mention the upfront $100k down payment and possibly another $20k to furnish the house unless you bought it as an existing STR.So in summary, in today's market, it's impossible to buy a STR and be a passive owner and still make enough profit to cover your mortgage payment. 

I just bought a $400k STR and the break even point with 25% down is $54k with a 2% sinking fund and 3% maintenance built in. 

Hi Angelica,Just adding my own 2 cents worth here from a deal I did not too long ago:I bought a prop off Auction.com about 2 years ago.

Treasury bills are essentially a short-term loan to the government, 1 year or less, bought through your brokerage acct.

I figured that people would see the dimmers and at least give me the benefit of the doubt, and they did.Then I got comment No. 2 on the same problem, brought in my electrician, and he saw and explained that the lights had been incorrectly wired when I bought the place.

The reason I post this here is because I got totally different answers from two CPAsHere is the story:I bought the house as investment property and run it as STR for the last two years.