It's definitely a balance of higher cash flow vs. ease of management stress.

You could also look at cash out refinance or selling the townhomes that aren’t cash flowing and use that equity as a down payment toward buying existing multifamily units.Building sounds exciting, but there’s a lot of stress that comes with it, construction timelines, cost overruns, lease-up risk, and carrying that big payment while you wait for tenants.Personally, I think it’s safer to buy something that’s already built and stabilized, or at least needs only light rehab.

When margins are thinner, the stress of always needing to deploy capital immediately after a refi can push you into deals you'd otherwise pass on.My approach lately has been to target a specific amount of cash reserves per property before I start seriously looking for the next one.

Driving for dollars, sending basic letters, and calling owners who have clear signs of stress like vacant homes, code issues, or inherited properties.

High-performing STRs usually balance:Bedroom privacy (not all doors opening into the living room)Bathroom access (guests hate sharing one bath)Usable square footage, not just total square footageThe takeaway isn’t “always add more bedrooms.”It’s design for how guests book, not how buildings look.Before finalizing a build, it’s worth stress-testing the layout against real guest behavior in your target market — not just comps by size.Small design decisions compound revenue far more than most investors expect.

In many Midwest markets, you can find affordable multi-units that make house hacking much easier and less stressful compared to high-cost coastal areas.

Less stress, less turnover, less time. win-win.

Joining a team may also decrease the total costs (marketing, fees, etc..) 

I would stress test it with higher interest, at least one month of vacancy, and realistic maintenance and capex.

It drives higher quality and causes less stress when you hold rentals.