My clients with $200k-$250k cash are able to get much, much higher ROI on real estate investing than what you're considering through some creative methods. 

What are the pros and cons of each method?

With the little knowledge that I have on this method, I started building it as if they were flipping a property... - They put in 2/3 of the money- Monthly payouts of 50% of profits- 4 month termBased on the pro forma of the rental, they'd have around a 30-35% roi by the end of the term.

I would suggest they understand various strategies/methods to invest in real estate and then let that drive their next steps as opposed to the dollar amount they have to invest.

So the enemy method is the way to get a good idea.Check AirBNB and VRBO and see what similar properties are doing in the area.Also, Louisville recently tightened up the rules around STRs so check with the city and make sure you are good to go for a particular property.

My company bought dozens of properties using this method and I was sure we didn't overpay.

Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice.

@Maxwell Hinesshort term - BRRRR method, for example.buy with cash or hard money, rehab with HELOC money, then refinance and pay it all back.you never want a HELOC as part of a long term situation.

I would use AirDNA and "the enemy method" to see the most successful STRs in the area.

Hey @Matthew Samson, regarding "figuring out the financials" for 0-5 small properties, you can do this easily yourself just using excel or another free method.