(I guess that's what the $3K to $4K deposit is for)(3) Is it difficult to find private money @ 12% over 5 years to fund these deals?

The state doesn’t have rent control laws, but landlords are prohibited from collecting more than one month’s rent for security deposits.

I dont allow tenants to move in without first month rent and security deposit paid by cashier check .

I rarely see ledger boards secured and flashed properly as one example.

Also, added smart-deadbolt locks to each bedroom for extra security in house-hack situation.What was the outcome?

For added security, consider umbrella insurance alongside the LLC. 

The company I use has patched the issue since then, but security is ongoing, of course.

If interest rates stabilize or your property value has increased, you might secure a better monthly payment.

I know I need to hold the security deposit in an escrow account.  

What I’m discovering is that just because a town allows STRs doesn’t mean the local laws make them operationally feasible unless you meet very specific criteria.For example, in Highland Lakes, access to the lake requires private membership, and it’s unclear if STR guests can use it.