I only have experience with regular single-family homes as STRs.

Since then, I have started my own cleaning company specializing in Airbnb Turnovers, Commercial Real Estate, and working with Realtors to help create memorable client experiences. 

Here are a few to watch out for:Property Condition: Most distressed properties need extensive repairs or renovations, which add to your initial investment.Competitive Market: With Phoenix's popularity among investors, competition for the best deals can be intense.Complex Deals: Foreclosures, auctions, or short sales are much more complicated compared to regular real estate transactions and usually require specialized knowledge.Tips to Successfully Navigate the MarketDo Your Research: Understand the local market conditions, including neighborhood trends, property values, and potential rental income.Build a Strong Network: Work with professionals who specialize in distressed properties-such as brokers, contractors, and legal experts-to make the best decisions.Assess Costs Carefully: Factor in the cost of repairs, holding costs, and any potential financing issues when evaluating a property’s profitability.Be Patient: Finding the right distressed property takes time.

You‘re welcome to join my regular meetups in Bad Kreuznach or Wiesbaden.

Definitely do homework on making sure you can get a clean title and make sure that the foreclosure was on the first lien.  

Stand out, be unique, and offer something of value that you would love if you were a traveler (cleaning service, amenities, a theme, etc.)Happy to help you find a place if you want some help on the agent side.

But in reality you might just want to think about using a standard savings account And taking a hit from inflation on the cash because the delta from the higher interest account to the regular account is not really that much on small amounts.

Very easy to clean and it still looks pretty good instead of flat or matte sheens.

I used to live in Tokyo for 6 years and would like to find a reason to go back more regularly but let me know if you want to connect!

If you're looking to treat this as a regular rental, then charging undermarket rent throws a monkey wrench in that.