It will also heavily depend upon your buying strategy and what kind of renovations/flips you are trying to do.

Partly because California is a heavily populated state, with lots of investors, and is known for being a very non-asset protection friendly state.

To add some conjecture to this topic, I'm of the opinion that the area in which you are heavily invested will also be dependent on the Start up community in the area remaining liquid.

My best recommendation would be to consider a niche you would want to go after and invest more heavily there than trying to stretch yourself too thin.

One of my partners is concerned that with the current economic climate the rates may go up to 11, 12, or 13 percent (or more...) which would cut heavily into cashflow and severely diminish our returns.

Now the performance of a STR is heavily depend on the market/area you are at.

Not wanting to live so heavily in debt, I rented out the master bedroom and I lived in the smaller bedroom.

Hi @Axel Meierhoefer,I absolutely agree with you, and think that an investment strategy that leans heavily into new construction will see a lot of success and popularity going forward.I love the traditional buy-and-renovate turnkey process because it offers an excellent price point for investors, but I also see the need for the build-to-rent (BTR) offerings—for much the same reasons you mentioned.Spartan made the same addition to our strategy and we started a new construction company in 2019 that allows us to service investors looking to go down the BTR route—so you’re in good company here!

AND it is heavily marketed by everyone who thinks it will help them gain eyeballs.2. 

Building here often works out better in the long run in our market so that's why we focus on it so heavily.