@Derrick Lewisyep i think we would agree here. 

I agree with everything @Michael Baum said.Many people, including myself, have used a 10% down second home loan to buy a property used for a STR.

Agree with Jonathan and Jake -- timing is just as important. 

I agree and as you said "if you want to make money" but in this case I am not trying to make money, right away but rather not loose money if anything.

Agreed with Bruce.

I agree with @Michael Baum do guests mention in reviews?

For a 4 bed you are likely looking for insurance placements I agree .I  would love to know if someone has experience working with  insurance company  that are looking for a placement.

I’ve had several investor clients go with a new (to me)/ unproven lender because of a slightly lower rate promise only to get burned by that lender (closing costs were higher, appraisal costs much higher and appraisal was a nightmare, main point of contact gave us the clear to close as we passed our financing contingency then just before closing someone from the underwriting department we previously didn’t know existed said we need a few more days and seller didn’t agree because they had a higher backup offer, jeopardizing the earnest money and losing the property, etc).

Agree 100%.

Tell her if she doesn't agree to the new rate, she give notice to vacate and provide move out instructions.