In this environment I wouldn't put all my eggs in the STR basket.If your insentent on this then you must put a lot of effort into vetting the area, the rules, the property etc to make absolutely sure a given property will cashflow with conservative numbers and what your exit strategy per property is if they don't go as anticipated.

This is the most conservative way to begin because theres no rush in rehabbing and you also get to live somewhere where people are paying your mortgage.

Before going into this, though I would be very conservative in your analysis of cost to renovate and what you think market rent (along with increases in taxes and insurance) would be so that once you are ready to refi into a longer term loan, your DSCR is rock solid and so is your cash. 

Worse case, you can safely use the 4% rule to tap into some cash from this investment if you need to over-draw from the line.Also from the rental income perspective, its common to see variances from monthly cashflow and the projected cashflow (spreadsheet cashflow), but if one is conservative in the projections then most likely the projected cashflow over 6 - 12 months matches the expected withdrawal. 

A more conservative, property-rights-driving ethos in the county. 

Seller concessions towards closings costs can reduce cash to close and conserve capital for furnishings and operations during licensure.

Longer term, we could add additional cabins to the property (as stated above) since the current owners are sending overnight business to hotels in the area that are 15+ mins away.Our situation:We have about ~45% equity in my home (appraised at $775K about 6 months ago; we made some improvements but to be conservative, let's say this is still a good estimate), I can cash in my 401K, and have RSUs from my company that I can use for the majority of the cash I need to have "skin in the game" but it's short the 20% I will need for an SBA 540 for the real estate + 5% for the SBA 7a (this 5% for the DP is possible if the sellers can finance some of the business).

They will have their quirks and you might uncover things as you get into it so be conservative

At the end of the day only you can truly assess this, but my conservative advice is to hold and rent that asset while you get a chance to see what living here is really like, then make a decision.

My wife and I are on the same path right now.I say those are solid conservative numbers when analyzing.