It's hard to give up $7k/m in cash flow, that is just great income, but long term, having appreciation is very important too. 

And the more motivated the seller is, the more willing the seller will negotiate terms and price. 

It really depends on what strategy your trying to implement as some areas are better for STR/MTR then long term and vice versa.

This is too low for my likely as I typically like to see a 20+% return on renovation funds.

@Jay Hines I'm not sure that's how people would refer to wholesaling in terms of an investment strategy. 

With the hefty down I'd aim for a lower I/O rate of 5-6%..Conventional terms would be in the high 8%'s.

Honesty and transparency is simply a profitable, long term strategy to build sustainable source of income and not end up with huge fines or, worst of all, in jail. 

The challenge that many borrowers run into when looking for larger equity lines with limits  of $250k+ is that they typically require full income verification (not always bank statement and DSCR exist) with lower DTI ratios (43-50%) however although the repayment scheduled is based off a simple interest only payment, (usually a 30 year amortization schedule with the initial draw period of 5-10 years) the qualifying rate is based off of the converted twenty year amortization schedule (240 equal installments) of the payback period.

But then, as short-term rentals became ever more popular, Americans tourists started thinking wait a second "We're paying so much for staying for a week at that short-term rental.

It would fix your cash flow problem, but that comes with the furnishing expenses and a little more work than long term rent.