But I figured you meant that maybe the property was in bad condition, but the loan terms themselves weren't bad. 

Like you mentioned, be aware of the short-term rental regulations through the city but also pay close attention if there is an HOA.

Hi Everyone,My husband and I are looking to invest out of state in short-term rentals or Airbnb properties.

All that said...if you're not confident you can get at least 1.5x your LT rents as an MTR, I think I might go with long term but skip the management company and DIY. 

Purchase price: $850,000 Cash invested: $15,000 Bought on owner financing on a 5 yr term.

Any market can work, you should consider a market that you have some 'competitive advantage' compared to others.Think of an area that you grew up in, went to school, visit friends / family, visit often, best of luck.Also, do you have any experience in rentals / short-term rentals.Air-bnb's hosts have become 'commercialized'.You will not out-perform a host who has years of experience, does this 24/7 and has a team of support.Best of luck.

I would first start with pre-foreclosures, and filter out by equity etc.

Can refi an existing mortgage to a shorter term “Mini Mortgage.”Navy Federal 80% LTVNorway Savings Bank, MaineOmaha MortgageOregonians CU - ORPenFed max 3 other properties, including primary. 80% LTV, prime + 1%, <4 properties.

Doesn't seem like it's a great "hold" on the short term but I do think it would appreciate and would increase in cashflow with how you described it and the layout.

I bought a house in Dallas for short-term rental.