This would allow you to maximize tax deductions at ordinary tax rates.

Interest Rate: 6.5% per annum (fixed)5.

@Stephen Fleming your cashflow probably won't be what you think it will be:(Have you factored in the new property taxes at homestead millage rates?

New construction can offer many incentives for interest rate buy downs.

Additionally, a pro-rated portion of tax is due if you sell with debtOr dent is on the priority for the year prior.

Here's a bit more in detail about how rates are calculated for DSCR loans:1.

Then consider your ADR/nightly rate.

Personally I would want to manage the rental myself at least in the beginning to make sure you get good ratings.

This person likely has a 30-year fixed rate mortage financed at less than 4.5%. 

They get a higher return since they are covering housing cost, have the $250k per spouse primary residence deduction in gains, is a savings account, higher leverage position, lower interest rate possible, will pay more premium for location, etc.House might be overpriced for REITs but not for home owners.