Short-term rentals in tourist-heavy areas can also outperform traditional rentals.

I own a condo in Panama City beach that is considered a condotel most of them are all considered that are on the beach In a tourist area.

Magnolia has an incredible restaurant in another part of Waco, they bought a historic hotel that they are currently renovating, they bought an actual castle in the heart of the city that they are currently renovating, they own one of the largest real estate brokerage firms in the city that continues to serve the real estate market, and they themselves own several Magnolia short term rental properties that tourists can rent nightly to have the full Magnolia experience.

I’m focused on tourist-friendly areas (Bay Area, North Tahoe and primarily Sacramento) I have a few apartments interested in learning more about my plan.

I recommend avoiding condos for STRs unless they're in tourist areas like Lake Tahoe.There is not much you can do if the residents in the HOA vote to no longer allow STRs.

I would avoid the expensive over saturated tourist markets and go for towns which have universities and hospitals.

Its proximity to major attractions, businesses, and vibrant city life ensured strong demand from both tourists and professionals.

This is particularly beneficial in popular tourist areas where demand for short-term lodging is high.Flexibility: Owners can choose when to rent their property, allowing them to use it personally during off-peak times.Support for Local Tourism: STRs provide a unique lodging option for tourists, helping to boost the local economy by attracting visitors who may prefer a home-like stay over traditional hotels.Diversification for Investors: STRs provide real estate investors with an additional income stream, especially if they own properties in tourist-heavy areas.Cons:Strict Regulations and Higher Fees: San Antonio recently updated its STR regulations.

Unless you have an STR-friendly HOA in a tourist hotspot (Honolulu, Las Vegas, etc...), I personally don't like properties with HOAs if your plan is to run them as STRs.  

These areas attract not only residents but also tourists and second-home buyers, maintaining high real estate activity year-round.While there is a slight dip in demand during winter, Southern California’s diverse economy, international appeal, and housing shortage make it one of the more stable markets for real estate investment.