Hi Andrea, It would depend on what your strategy is going to be in the long run.

How long ago did you begin renting it out?

We know being an landlord is a job, but if we hold it for long time, it can be a decent income.However, now we are thinking since the interest rate for our sfh is 6.375%, why not sell the townhouse and pay the principal of sfh?

As a first time investor, I'm thinking to replicate those existing houses (with little bit of my touch) but wanted to ask what would be the pros and cons in terms of competing with existing STR's in the community?

Purchase price: $140,000 Cash invested: $140,000 Here are the pictures:https://www.redfin.com/IL/Kankakee/880-S-Foley-Ave-60901/home/63247747 What made you interested in investing in this type of deal?

I did see this https://www.biggerpockets.com/forums/521/topics/1199508-cash... and thought I would check it out. 

Purchase price: $127,000 Cash invested: $20,000 Off market deal from a relationship when tenet left aesthetically rehabbed the house and is now cash flowing rental.

DSCR Lenders will generally underwrite DSCR Ratio for a 30-year loan at a "go-forward" estimate of NOI thats generally looking at the next 12 months or first 12-months of the term. 

The warranties always take a lot of time, and you will either end up filing a warranty to find that it is going to take too long and then purchasing something else the same day, or you will end up giving refunds back to guests while you wait on the warranty to be handled.I learned this the hard way when I first got in to rentals.

I'm also open to learning more about short-term rentals and Section 8 rentals