And I don’t want to have to pay a monthly fee.

This is an expensive place and it's not drivable so everyone needs to arrange and pay for airfare.This is tough.When you did your research prior to purchasing, did you find other similar properties that were already successful or is this more of a hope everything will work out?

This means an additional $200 per policy on top of what I already pay . 

Maybe you pay them for their trouble and to avoid the lawsuit.

Under the Augusta Rule, your business can pay you a reasonable amount to rent your house to conduct the once-per-month meetings.

Even if you are someone who is content with "where they are at" so to speak, paying a real estate focused accountant to stay compliant makes sense too.

Unfortunately, residency doesn't pay much!

@Aaron Bard- plenty of  lenders  offer  DCSR loans ...contact a  few  for  quotes ...also - dont  pay  any  lenders  at the beginning of the process 

Say you do let them move-in as well and they end up smoking inside, you could end up paying a lot to get that smell out.

With an S-corp you are required by the IRS to put yourself on payroll, pay reasonable compensation wage, and provide yourself a W-2 along with all other necessary payroll filings.