Well, this my opinion, if you like unpredictability, constant change and people/contractors with no regards to you or your property then "YES" flips and STRs are the way to go...LOL....I love it!!! 

The people the seller should have this discussion with is the title company and or legal counsel.  

We lend up to 75% of the ARV but most people are buying and rehabbing well below that from the investors I have been working with.

I think the risk is similar and probably even less likely with midterms, particularly since you should always have a lease agreement for your midterm rentals whereas people rarely do this for short terms.

I think there are a few types of people when it comes to this oft asked questions. 

I live in a town of about 100k people here in Dothan, AL, so STRs aren’t the most popping market.

Don’t be distracted by people with other plans and ways.

It is important to note, people would rather rent a cleaner, and newer home, than a "larger."

It is my view it has the exact opposite correlation that most people think. 

Heating costs go up in winter, as does electricity due to the reduced natural light and more people indoors.