Option in the TREC form requires consideration because it is a separate right within the contract...the right to walk away for any reason within the time described, including negative inspection results.  

I only had enough to cover an appraisal and inspection.

I'm guessing because you will lose tenants during a market crash and the large amount of debt can lead to the mortgage coming out of your own pocket (ie negative cash flow), and you can't sell the properties either since the prices dropped so low?

When we bought it the rents BARELY covered the mortgage payment so it would be cash flow negative after other costs.

MF Negatives - Smaller buyers pool, more difficult to sell, depending on your market, lower market appreciation compared to SFR.

@Lourdes Garcia I only buy new and not the low end.

@Mike Messink I would love to chat more about where you are looking for STR in Cincinnati, I am rehabbing a rental right now that I am considering for a STR but I am not sure if the demand will be worth the extra cost, I only have traditional rentals right now.

I only own 2 rentals so far, but I did/do not stress about any formulas that you see on here. 

But like you said, you’d be trading your time, headspace and still not positive of the 50% return which could go to negative as well.  

I only have 5 units at this point.