I ask myself that same question as I personally detest the extreme heat Jul-Sept (Jun usually isn't too bad). 

It is extremely rare to find a perfect BRRR in the zip codes named above, but is leaving $5k-$10k in a deal really that bad?

We also have a unit in Kissimmee that has been extremely challenging to fill. 

Extreme example but making a house sellable in a higher value market is a good tactic to me. 

Vacation rentals extremely lucrative.

Just not as long as the EverSeal System.We have installed the EverSeal system on many Rubber roofs without any issues in conducting repairs to the rubber before or after the installation.The sealant is built to adhere to rubber extremely well and we have techniques that allow us to make repairs to these roofs before and after.

Next I would definitely walk the property extremely thoroughly, look for foundation problems, roof, hvac, appliances, every sqft of the property should be inspected. 

It will be frustrating and even more frustrationing is that... without a written policy, it'll be extremely difficult to explain that you didn't discriminate.Sidenote: We send application standards BEFORE they schedule a first showing.

Yes, I am worried about liability issues in extreme situations and plan to use an LLC.

Always think it is extremely important to note that Cap Rate does not drive value on Single Family Rentals since NOI is not the factor for the vast majority of the market - only really relevant for Multifamily and Commercial (BP audience is generally skewed towards residential not commercial investing)