Even at a conservative 8% cap rate the building is worth around $1.625M.

Less upfront costs and easier to manage.Most people see the nightly rates of STR and assume the net is higher, but that's not always the case.

Due to TCPA enforcement, my response rates on Launch Control and other texting platforms dropped dramatically.

Property is cash flowing and we have long term fixed rate debt.All good.

First, I would comp out what the going rate is for a 5/2 SFR in the same area where the subject property is in. 

In essence, it represents the maximum rent that CMHA is willing to pay for a particular property.Renting to CMHA tenants can indeed offer potential upsides, such as higher rents compared to market rates in some cases, as CMHA may be willing to pay above-market rates to ensure tenants have access to suitable housing.

turnkey means - you buy it with a high interest rate and high down payment, perform no value add, rent it out, and hope the HVAC doesn't go out in month 4.where or how is that 'cash flowing' right now?

But I'm wondering whether it is wise to put more money down for lower interest rates or take a hit on interest rates and keep money in pocket?

Its a strategy that barely even worked few years ago but currently airbnb rents are DOWN across the board and LTR rents are UP, the trend changed last year due to so much airbnb supply it dropped the rates and airbnb also got stricter with cancellation fees as well as giving guest refunds more often. 

With rates over 8% for investment properties, it will be tough to cash flow without a creative strategy such as STR or rent by room.