Buy local condo for LTR or second/vacation home for STR

[Rafael Ro]

I've been trying to make a move for a few years, and I'm finally getting ready to pull the trigger. 

I'm based in CA (Palm Desert area) and I've considered 3 options. 

1) A condo in Palm Desert (10min drive) -- I have my eyes set to a community of 2bd/1bath townhomes, where they sell for about 240k, with about $400 HOA. With 20% down, my monthly costs for the loan, insurance, and tax for the condo would be about $1900.

I would manage a long term tenant. 

These should rent fairly easily for $1800 - they're typically listed for $1800-2000, and they're in a great location, one of the cheapest options around, and zoned for a great school. 

2) A small house in Big Bear (2.5hr drive). This would be at around 350k. With 20% down my monthly costs for loan, tax, insurance would be about $2,250. 

I would use a PM company to do Airbnb. I could be wrong on this one, but I believe this could rent for an average of $2000 per month, after PM commission. 

3) Out of state C Class house (ie. Memphis). This would be through a turnkey company for about 110k, renting at 950/month, so the numbers are so much better, but way less appreciation and potentially bad tenants. 

I'm looking for stability and long term growth. I'm leaning towards buying the condo. 

I would love to hear your thoughts on the above and specifically to share any advice for me in terms of saving as much money upfront (ie. it would be great if I could buy with a smaller downpayment), or also things to consider as a first time landlord. 

If I can buy that condo and come close to breaking even (or have a negative cashflow of 100-200$ per month) then I'll be a very happy man. But is that realistic?

[Jules Aton]

1. I'm unclear why you would want a condo that would cost you money and is near your home so I'm guessing no perks of using as a vacation property for yourself? It sounds super cheap for CA and great school districts always grab my attention. Condos can come with negatives including fees, restrictions, supply/demand when you attempt to sell and only 1 bathroom is a negative. 

2. The house might be a good investment but you would need to vet the actual numbers. 

3. I'm generally not a fan of long distance investment rentals although I understand I'm the minority here. That said a class C property anywhere isn't what I would consider investing in but again that is a personal thing.