I have a STR which I renovated using a HELOC on my primary home.  

Don't just assume lowest downpayment, next house.

I was wondering if buying a long term rental property with tenants already in place in a market that is up 20% yoy is a good investement or not. the rough numbers ive been running seem to have a decent cap rate but the house is about 15k more than the zipcode average. 

Quote from @Joshua Lee: I've read about house hacking the BRRRR method, FHA loans, etc..

It is a 4bed 3bath 3200sqft $1.2m custom homeBenefits- no HOA or rules restricting STR -1mile (walkable) from historic downtown or from the Rock park-house has nice views and is pretty secluded from neighbors and feels private-assumable loan with much lower than market paymentDraw backs- high price -no comps, new house in older neighborhood.

Please correct me if anything I say about my plan is wrong and I'm willing to learn/listen to more advices here.I'm currently living in PA will be paying off my house this year (only $20,000 left).

Overextending Financially: Stick to your budget to avoid becoming house poor.2.

Does that automatically disqualify them from being good tenants that would pay the rent on time & not destroy the house?

My interest in real estate investing started from reading books and listening to podcasts, which got my thinking about exploring house hacking as my first venture.

I haven't had anyone jump up and down for something we have in our lake house.