Ultimately, finding the right investment location requires thorough due diligence and a clear understanding of your investment objectives.

I read somewhere a story about this dad who couldn't understand why he couldn't keep tenants.

I would start with something more like a light value-add so you can filter out any bad contractors, get a feel for investing OOS, and lay out a solid network as your foundation.

https://www.zillow.com/homedetails/1409-N-Hill-Ave-Pasadena-...If vacant this could work. It is pretty easy to add sqft in Pasadena. This could be done in 6 months. I'll go drive by and see if it's empty.

Some people treat their STR like a hobby and others treat it like a business.You don’t know the numbers are based on if owners use it 3 months a year themselves, or manage it themselves and have STR knowledge or farm it out to a competent or incompetent property manager.In one area I invest in, the biggest players are all large direct booking sites with hundreds of properties so their revenue doesn’t show up on airDNA, etc.Use conservative numbers and understand your skills in terms of getting a property to be unique, marketing, listing management, etc. or the competency of the PMs you are interviewing.Good luck!

@Stuart UdisHit the nail on the head and I would agree and have said same thingOne thing I will add is you mention contract management / this should include an attorney reviewing the contract and the investor understanding what indemnification is.

You need to understand the answers to those questions, and then you can determine if it's worth the purchase or not. 

Personally, I feel you should start off with understanding what actual reality is.

My understanding was it needed to be 1 year of steady income to be considered, BUT not a lender, so obvs confirm with them.

To me anyone promoting a 36% return I would question and want to understand the risk.