First investment property in a high-rate market: long-term vs short-term rentals

[JackTW]

After years of saving, I finally have enough capital for a down payment on my first investment property, but I'm paralyzed by the choice of strategy in the current high-interest rate environment. I'm torn between pursuing a traditional long-term rental in a stable suburban market or trying a short-term rental in a nearby tourist city, each with very different risk and management profiles. For experienced investors, what real estate investment strategies are you leaning into right now, and how have you adjusted your financial modeling for higher borrowing costs? What specific metrics, beyond just cash flow, do you now prioritize when underwriting a deal, and how do you weigh the potential returns of a more hands-on approach like house hacking or BRRRR against the simplicity of a turnkey rental?