I bought one in Pinal county a couple of years ago and earned the full 16% interest  (1.33% each month) for 14 months.

.- it does not forecast rent growth or appreciation into the calculation.Those are not areas i desire to invest.  

Maybe lost of tax efficient gains during peak earning years?

Real estate is local.The value is just fine here, as it is one of the most desired locations in the Côte d'Azur, and being next door to Monaco, which is one of the wealthiest places on the planet.

Here's some STR companies in the area that can possibly help you out...Go Wander Home Desired StaysThe Sosi

On the other hand, keeping the house could allow us to maintain an appreciating asset in a desirable location.I’d love to hear from others who’ve faced similar decisions.

It's all about the location, you might be able to buy a cheap house, but if it's in an area with nothing but other cheap houses and in an area that is "not desirable" you're not going to make much money on it, either in improvements or rent.

Earning an extra 3% on $2k that you’re likely holding for less than a year.

Not how much can this property earn as an Any DSCR lender is going to go to lend off the income approach.

My two least desirable properties the appraiser appraised them out the roof so my refi cash out was really good.