I understand the argument that the general public should not be restricted from investing in “highly profitable” deals, but what tends to end up being offered to unaccredited, unsophisticated investors in the “junk” end of the investment spectrum. 

I will say from experience that STR renters tend to be more needy than long-term. 

Usually in my experience that tends to come back higher, aligning with the comps, after the actual renovation was done. 

@Brett BurkyThank you for noting I made a good point - see even a blind squirrel 🐿️ eventually finds a nut.To original poster - I tend to be brutally honest at times so happy to share my opinions on anything you are looking at

because when you are passive and you do have money, you tend  not to understand the risk.

If your goal is to acquire many units, consider looking into more affordable markets such as Akron, Cleveland, Dayton, and Toledo, which tend to be more favorable for this type of investment.

And when people get tunnel vision for lowest $ down, they tend to not give attention to the revenue generation of it, the operations, and that's a VERY dangerous combination of high leverage and not so-good revenue. 

The people who tend to want a tour are usually already in town at another rental and aren't happy there for some reason or another.

Commercial properties owned in an HOA tend to have issues with financing. 

Where FHA tends to shine is with credit below 680-700 and/or higher DTI's (over 43%).Also, whether you use an entity (such as an LLC) is largely irrelevant on your return, whether cash on cash or any other metric.