This limits their RE Investment options to RE that does not have huge negative cash flow.  

Quote from @Makan A Tabrizi: Quote from @Bruce Woodruff: Quote from @Makan A Tabrizi: I'm renovating a studio apartment with limited space.

Using cash is great if you want to keep all the profits, but it can limit your deal flow. 

The problem with selling is a lot of that equity will be lost when you sell it either through taxes or payments to your listing agent.If you ever have the ability to limit these types of fees and still be able to use your equity to fund additional purchases I think you should.

The town of Shandaken has some pretty strict rules regarding STRs, requiring a "absent owner" STR to be owned for a year before it can be used as an STR, and also limiting the number of STRs to 100 properties.

My belief is that if you can find a good enough deal, you can make it work - even with limited track record.

As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to purchaser.Thanks, I got the impression there was a difference between contract for deed and subject to. 

However, be prepared for limited inventory, higher competition, and possible compromises.

The "Initial Filing" is extremely important to get this right the 1st time as there are limited safe harbors for mistakes to avoid the penalties.

Note it often is not a result of significant NOI change (excluding some markets where a lot of new units have been added). 3 recent studies show it is cheaper to rent than own in virtually all of the largest US markets.