Not sure why when I'm searching for something and the first results are ones that pop up from 8 years ago and have no replies...

I'd suggest asking your lender to mock up what it would cost to get your rate to 5% and then do a cost-benefit analysis to determine if that's the best use of your funds. 

You can go heavier in one category but that's up to you on which on you'd rather invest more in

Lots of townhouses popping up.but don't have a ton of reachable cash. 

I was a RE broker doing acquasitions for a large syndicator in the 80s in San Francisco / Sacramento market.. and thats what brought down their billion dollar buziness taking reserve money from good projects to prop up losers..

Like it'd be awful to build up a nice base of STRs and then something like that happens and everything is empty. 

What if you get into the market and absolutely end up hating running a short-term rental?

Hi Nathan, Thanks for reply, But I am from Canada and my city doesn't show up there.

I do have a contractor that has an amazing team that can do everything from the ground up to plumbing and HVAC.

You're signing up for an absolute meat grinder of a job with the hope that you can someday stabilize it and build something that could be put on cruise control or sold.As for tactical advice, tap into your network and alumni network.