The vale of depreciation on property as well as business loss are capped if you have high W2.  

Are you happy with the return on that investment and do you think it will continue to appreciate (highly dependent on where you are at in the Bay Area)?

Where my primary residence is, cash flow negative, entry point for anywhere around here is too high, and I like the market out that way.

LVP flooring, paint, upgrading small fixtures)Please feel free to PM or comment directly!

One thing I'd keep in mind with mid-term rentals is I expect the mid-term rental market to get highly saturated at some point just like the STR market has.

The STR one is 1989 built and needs some Rehab in form of paint, cabinets, appliances, floor, fixtures, water heater etc.

If investing in that studio style, I’d highly recommend only the best asset qualities, i.e. walk-in with no stairs, good area, golf course or lake view, etc. 

Being able to do min one week stays would be nice if that would allow the property to generate more revenue.If the property has already appreciated a fair amount in 2 years it would be a bummer to sell now just because the rate is high. 

So, either the purchase price is very high, or your expenses are high. 

Therefore, it is important to examine this "yield" in advance and choose a property with high profitability.