Additionally, and obviously, you will make less potential profits.To the OP: You will not be able to "grow" your portfolio at any substantial pace with this model.

As previous responses have indicated, it's almost impossible to cashflow anywhere in the Bay Area without a substantial down payment. 

All available loopholes, which allowed deregulation of units were, unfortunately, closed by our elected officials, except the substantial rehab strategy, which requires 80% vacancy throughout the building and 75% replacement of all building-wide systems, you are essentially forced to renovate the complete building and still at the mercy of DHCR.. which has the final saying

In my opinion, rentals are best if you can get a house at a substantial discount to account for inflation.

It lessens our overall control substantially and thereby increases our liability for the project(s).

@Ashni Modilet's be very clear.you likely will NOT cash flow in the first year, or the first few years, unless you (1) buy something in PRISTINE condition, and (2) you put a substantial amount down.and think about it - the more you put down, the longer it takes to recoup that initial outlay before you actually cash flow.contrast that with a savings account. 

In a recession the STR market will be the first to get hit and your proposal doesn't have an exit strategy as the value of the property along with daily rates would decrease substantially. 

Also folks if you are mastering these primary collection you would not want to invest OOS, buying rental or syndication , this is enough to create substantial wealth.

With a purchase price of $160,000 and a sale price of $180,000, the property promised substantial returns with minimal risk.

With a purchase price of $40,000 and a sale price of $78,500, the property promised substantial returns with minimal risk.