Some say it increases bookings, while others mention concerns about damage and additional cleaning costs.

The Highway 64 property presented a great opportunity due to its low acquisition cost and potential for substantial value increase.

@Nathan Deutsch Welcome TO BiggerPockets If you are not comfy with privacy issues while house hackingyou can try  a  FHA loan or start with a partnership to buy a STR etc

Unit 3 - mid-term rental (this would be best for the most private unit as most mid-term renters are more concerned with privacy and creature comforts than amenities)4.

Throw in that you can dramatically increase the value of the property once you show consistent rent rolls much higher than when the space was used for LTR, and you have a big win. 

We all know 'housing affordability' is one of the hottest political topics as of late but I'm not seeing any commitments to increase inventory. 

But, for instance, I sent them a notice of rent increase effective February 1 and needed them to confirm that they have accepted the new payment terms through our electronic payment system, and even after repeated notices, they are not responding.

Cheap money and low rates produce euphoria, which increases flow of money to an asset, which pushes up the price to uninvestable levels.I think it's going to get worse than better in the short term.Gino

How are the sellers being protected, in the event things change, vacancies increase and mortgages can't be paid? 

Its a nice little cheat/loophole on the mortgage side that can help afford a larger home pice and increase your chances of getting a home or other loans.If you have any questions feel free to reach out I am always happy to help and go over the basics.