Rates are too high, so borrowing costs are high.

Just a quick follow up to @Christie Gahan's comment: ** Yes, Long term capital gains are taxed at lower rates, but it isn't as simple as the first $500K of gains are taxed at 15% -- rather, the 15% bracket will account for your total income from all sources. 

As far as a general STR strategy, a nice 3x2 house within an hour of a major attraction is not too much to manage and can drive a nice nightly rate if you go with high end design. 

@Yael FuerstIf they are rentals you could get a DSCR loan.If the loan you get is lower interest rate than the current loan amount then it makes sense to do thatFor example if your debt is 10% and a DSCR loan is 7%, then pay the lower interestHope that makes sense

Recognize market trends, rental rates, and property prices.

Their labor rates are way below market rates so don't expect any big name established company to show up. 

When interest rates were lower there were more deals to be had and cashflow was solid with even a moderate down payment.

@Ethan Swat have you done the math to calculate the increased booking volume or higher booking rate is required to break-even on the investment?

They mentioned it in the latest Vrbo webinar so I asked my Vrbo account manager and this is what she said:I put in a case to see if we can get Rate Automation placed in your MarketMaker.

You can also always put more down to cover risks and refinance into lower rates.