Example: If there are too many STRs and you can't get the occupancy high enough then you could switch into MTR. 

The best way to add equity in your first deal is through sweat equity where you can actually do some of the renovations and you are not paying full cost for the renovation project, but this is highly dependent on the condition of the property you identify.

I have about $250k in equity in the home and my realtor believes if we list it we will probably get a bidding war in this market and since our neighborhood is highly desirable.

Jimmy,The key thing to note here is that they have high limits on their Insurance for Liability.  

Great strategy that should be highly considered in my humble opinion. 

Whatever the type of financing might be, they usually have maximums not allowing deductibles that high.

Hey Seth, If you have a good FICO, Loan Amount is above $250k, and property DSCRs at 1.25, You may achieve a rate at the high 7s at 70LTV on a 30 year fixed loan. 

I've often heard BP use the terms "Cash Flow markets" and "Appreciation markets", and they are generally referring to low-priced markets as "Cash Flow" and high-priced markets as "Appreciation".

My agent over valued and listed high.

What options would I have as an exit strategy to get out of paying this high amount?