We have 2 San Antonio sub2 deals that are turn key homes and only require about $20-25k to close (assignment fee + closing costs).They're a great option!

I have had investors pull equity from their homes in the phoenix area to buy cash flowing properties in Fayetteville and similar areas, because the price growth in the phoenix area generates amazing returns.It depends on if you want cashflow now or delayed gratification later.Keep in mind that when you do sell, there are costs to selling and depreciation recapture  and IRS taxes, which eat up most of your "equity" growth. 

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

Also these things cost money to sell - agent fees (5-6%), whatever your buyer is going to ask for at closing or try to hit you at during inspections (likely several thousand) plus taxes.

Make sure your rehab is "renter" cost rehab. etc. 

My first STR, and plan on splitting between self use and renting to help offset costs. 

Hard money typically refers to a company that has it's own underwriting guidelines, rates (9% - 15%), costs, draw process ect.

What else could that 30, 40, 50k+ downpayment/rehab cost etc do for you if it wasn't tied up in the property? 

I usually use the FMRs for the area as a minimum rent, but if you can attract non-S8 tenants, that works too.Can you share any numbers on the opportunity: purchase price/door, any rehab costs, ARV? 

I ended up doing that in 2021 and found properties that have made me money rather than costing me money every month.