A varied and reliable renter pool may be drawn to areas that are close to amenities, job hubs, and educational institutions.Keep in mind that the 1% rule is only a recommendation, and it's crucial to take the whole investment picture into account, taking into account factors like property quality, location, and growth potential.

In most cases quality PMs wont do super low level areas, leaving incompetent bottom feeders.

Depends on cost/quality.

Hey @Kay Li, Given we are accountants, we cannot promote our services on BP as its against the rules.To help in your search:be sure to find an accountant who is willing to grow with you, and is not too high priced fee-wise.

Side note: Keep in mind some items are naturally low profit margin work and some are high profit margin work.

I am exploring STR market and like to understand...How is ROI of STR compare to investing in SFH in high demand area?

Hey @Dave Anderson       If you want to make this scalable and repeatable, I would highly encourage you to start with your end goal in mind.

Since it's a rental unit for the future after you move, you don't want to go too high end to please yourself and not get the value out of it on the other end when you leave.

For example they took on (a) floating-rate debt (instead of fixed rate which was more expensive but safer), (b) short-term debt (cheaper but then they ran into refinancing problems) and (c) high levels of debt (to try to juice projected returns rather than conservative levels which aren't as "exciting" to a certain type of investor).

I personally don't like pay too much attention to ProForma as I can't predict the future so I usually just like to know if cash flow is good AND more importantly if I'm financing, if the DSCR (debt service coverage ratio) is high enough to safely qualify for financing (usually above 1.2).