These would be pure rentals not vacation homes and we wouldn't live in any of these properties.

FHA loans are not for pure rentals.  

@Brenden Mitchum what he said is pure gold. 

If not, and it's a pure investment, I would go by property statements.

In this case, you really want your cash flow to be closer to $200/mo for a Single Family Home (SFH), and that should be pure cash flow (after your expenses, maintenance, vacancy, P.M. fees, etc).

I think this might have been hinted at in this thread but if you are going for a purely financial decision, and want to do STR, I would stick only with existing tourist vacation destination locations that have been that way for some time.  

I feel that someone shopping purely on price, also has a larger propensity to have other issues that may make them a less than ideal tenant.

If the lending party is not expecting any sort of capital or profit interest, then just bring them into the deal as the pure lenders.

That could indeed be the best choice but just consider - If it's already hard to treat this like an pure investment decision now, think how hard it will be once you get into it....

Buy something move in ready or that just needs minor work so it is not too overwhelming and removes some variables from the equation.House-hacking and buying a pure rental require two different approaches in my opinion.