This negative position can consume years of cash flow to recover.

However, I do like the idea of bringing less cash to the table.Any thoughts between these two options?

Purchase price: $560,000 Cash invested: $140,000 STR investment What made you interested in investing in this type of deal?

I am mostly interested in appreciation/pay out at the end rather than cash flow each quarter.

I started with multifamily but price expectations have gotten out of control.Just refinanced my multi-tenant retail property and pulled out much more cash than I put in. 

Kind of like a cash for keyshttps://martinezlawcenter.com/new-rental-laws-in-california-...Most of the long time investors I know haven't had problems but if you get a "professional tenant" in look out and call your RE attorney.  

You’ll want to get really familiar with local zoning laws, short-term rental rules, and landlord-tenant laws as they vary by town if you plan on going the STR route.Focus on Cash Flow Early On: You might be tempted to go for something that appreciates quickly, but in the early stages, it’s important to find properties that bring in cash flow.

You can certainly find a property for cash flow that may also bring you a strong return on that investment.

 - poor cash flow.  

But weigh the costs of insurance and taxes against the cash flow and make your decision accordingly.