Historically, real estate will appreciate over the long term.  

They could also be losing money in the short term while value-adding the property (before they can increase rents and NOI).

Prepayment penalties- usually 1-5 year terms.

Hard money loans can be an option, but they often come with high-interest rates and short repayment terms.

I have 2 properties now one I live in but Short Term Rent it when not home which is a lot.

While OZ investments offer significant tax benefits, assess property risks and long-term potential beyond the tax savings.This post does not create a CPA-Client relationship.

Short-term rentals are becoming oversaturated in certain markets plus anti-STR legislation is resulting in some of those properties also converting to long-term rentals.You already have the operations experience by self-managing.

For example I know many who are now just lending because they are getting 10-12% short term which is far better than any cap rate on real estate. you do not have the equity upside as you do real estate but its a way to play the short game to see what happens over the next 12-24 months and decide when you want to buy.

Personally If you like your current residence and hope to stay there long term I would forgo major improvements on my primary and use all investment savings to make you more money and cash flow. 

I am but a short drive in the pocono mountains / scranton area.