Property is on an acre lot so units are separated and very private making it a great house hack.Located next to Benderson Park which makes it a great location for STRing the guest house.

Knoxville isn't a luxury market. widen the gap and do new construction. find infill plots of land in better locations and have more control. work closely with a builder who Is working with investors. we have flippers who did hundreds of flips then they graduate to new builds and say it's much easier. if you have the balance sheet you'll be fine. budget 20%. new construction commands a 20% premium and is much easier to duplicate Over and over and much less risk. 

What type of area is the hotel located in? 

@David LewisRecommend 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?

I am located in Australia

Be easier to have a rental with 10 doors all in same location than 5 scatter site rentals.

I would say markets are going to start "correcting" and it will vary between location and product type.

I think I'm paying about $4300/yr on a $600k property but that's in western NC and rates will vary by location.

I’d love to hear more about what you’re targeting in terms of property type and location.

But it's not that complicated, just buy in good locations and your risk is very low.