NWA is really growing, lots of great opportunities for investments and the cost of living is still affordable.

We have a very severe affordable housing issue here!

However, we will likely need a property manager to assist with some facets of running this rental (since we would not live locally) and would primarily market it through platforms such as Airbnb and VRBO to start, (eventually setting up a direct booking process).Here's our question for those who have experience in STR's or who might be involved in a similar scenario: How challenging is it to meet the material participation hours needed to achieve active status?

it was what I could afford at the time.

I knew that the property would be easy to sell to another investor or owner occupant, as it was affordable and a 3BR/2BA of 1,650SF so it checks the boxes for many prospective buyers.

There is demand for it and demand in this area for affordable housing, in a tourist area where plenty of people have vacant, second/third homes for seasonal fishing and hunting.

The biggest challenge continues to be affordability, as mortgage rates remain high and inventory remains tight in many regions.The 10-year Treasury yield has risen to 4.64%, which has kept mortgage rates elevated, currently hovering in the 6.5% to 7% range.

People who can afford a property like that will buy a home themselves instead of renting(majority of the time).

However, due to high property costs in our local market, we have been exploring opportunities in more affordable states, including Texas, Pennsylvania, Michigan, and Ohio.

Note: I say this also assuming you can afford the negative cash flow, but if you cannot, then get out as soon as you can.