If you are not already working with a realtor that is well versed in STR and knows ALL of the requirements for STR, do yourself a favor and reach out to @Josh Green.

These need 20%-25% down, require a 680-700+ credit score, and 6 to 9 months of reserves (reserves are payments in the bank). 

If you give someone over 19% membership interest in the deal, the bank will usually require a personal guarantee from that individual. 

A vacation rental could generate higher returns but requires more active management.

Also, keep in mind that some markets have a requirement that landlords have a locally registered agent (manager).5.

Because of my savings and lack of expenses, I'm in a very comfortable position to make my first move, but because my income is mid, I'm unable to meet the Debt-to-Income requirements to qualify.

Quote from @Dana Yobst: Quote from @Julio Gonzalez: @Dana Yobst While it may seem like a simple concept, it's actually a very complex process that requires significant documentation as well as specific methodologies.

A SFH doesn’t require a 20% down payment; you’d have PMI to deal with, but as you probably know, it’s usually a manageable cost.

Does it require a highway occupancy permit if its on a state road, in my area it cost me around $1000 just to get the permitting and design for my driveway entrance.

Requiring occupant to have renters insurance is another possibility for extra protection.