The key factor is the amount paid and the nature of the payment, not the payment method.

The size of your rental operation is one of the factors in this determination. 

@Ben Cochran I hope you have factored STR tax savings into your cashflow and ROI as it can be significant.

It's crucial to evaluate how the deal performs with the new mortgage:Updated Financials After Refinancing: Market Value: $459,000 Mortgage Amount (80% LTV): $367,200 Equity: $91,800 Interest Rate: 5% (30-Year Amortization) Assuming after 12months the rate will drop to 5%Monthly Expenses: Mortgage Payment (5% Interest): $1,971 (Now you are paying interest and principals) Property Tax: $260 (assuming has been increased with a 4% from last year) Utilities: $361 Insurance: $104 (+4% Adjustment) Vacancy: $166 (now after 12 months we can assume we have some vacancy at 5% factor on annual rent) Repairs & Maintenance: $166 (now after 12 months we can assume we have repairs at 5% factor on annual rent) Total Monthly Expenses: $3,028Rent Income after 12 months assuming annual rent increase at 5% : $3,323Cash Flow: $295$ per month 😊Long-Term Gains: $5,418 Principal Paydown year 2 (this will increase each as you pay off your mortgage $36,720 Property Appreciation (assuming 8% per year) $3,540 Cash Flow (this will increase as rents rise)Total Annual Return on Investment: $45,678 with just $ $22,789 remaining in the deal.

If you're happy with getting a note on ANY house in FL you might have more luck, but then you don't have as much control over the condition of the property or its location if those are important factors to you.

What are other factors and neighborhood I should consider?

It is important to factor in all the benefits of house hacking into your calculations, i.e. amortization, appreciation, income, & potential rent avoidance.

At this point I'm not factor in any vacancy because I have more leads on this property than I have rooms.

Look into factors like vacancy rates, local job growth, and tenant demand to pinpoint promising markets.Once you find a property, work on running the numbers carefully—factor in purchase price, rehab costs (if applicable), property management fees, and reserves.

BUT for certain rural areas it's worth it's weight in gold because of the reliability factor vs an unreliable or expensive existing utility structure.