I ran the numbers with rough and likely mildly pessimistic estimates of total rehab, based on paying $425 total to have it in good enough shape to keep 70% of rent, then assuming loan cost of 6.5% (definitely pessimistic since the last two were around 5% for me), and they aren't all that attractive-  If $425k total in-Rent for $4200 total =$2940/month using 70% rule$2535/month P+I for $340k borrowed at 6.5% for 20 years $1500 insurance plus $2740 Taxes=$353/month for Taxes and insurance$2890 total MTI =Marginal to no cash flow, $7800 per year in paydown- so about 10% on the $80k I have in, Then market gain leveraged X 5- This is the big wild card, and the one where I may be less optimistic than the rest of the crowd. 4% sustained yearly gain would make the whole thing seem really attractive all of a sudden- but I don't see our economy expanding in the middle class enough for this to keep happening for much longer :(a 1% cheaper loan saves only $200/month- still weak sauce cash-flow wise. 

It seems that every STR owner I know in our region started saying bookings were down right when gas prices started to surge, interest rates started to rise more rapidly, and inflation started being more painful.

These returns could be erased by an enormous surge in supply within the city itself.

He said it just stopped all of a sudden.

This has shown to be incredibly important this year when all of a sudden tenants can simply decide not to pay and there is no recourse as a landlord. 

Suddenly only the loans in your name count.  

Then, when asked to purchase the house back, all of a sudden it's "wait, we don't want it for the price we SOLD it at, we want it for the price its actually WORTH."

Same with the reverse that has a booming population- the immediate desire to want to know why suddenly pops on the list of things to research. 

I was working on getting mine after my first property, but I got deployed and my time window expired by the time I came back, then all of a sudden I honestly have procrastinated, placing other responsibilities higher on the priority list. 

You'll likely be writing a personal check here and there to replace a roof, a furnace that suddenly dies, a tenant does something really stupid, etc.