It sounds like you have already done this part and came up with an investable amount.The end goal - This is usually something like $10,000/Mo. income, in present value dollars.Time frame - The shorter your time frame to reach your goal, the more initial capital and credit you will need.For the rest of this post, I will assume that you want to create a reliable passive income stream that you will not outlive.

I will definitely take into consideration using shorter inspection periods in the future. 

Commercial loans traditionally require more down payment and offer shorter terms.

We could only get a loan if we purchased with an LLC - this was an increased cost because with four partners we had to get a lawyer involved to help us file the LLC and operating agreementFees were a lot higher, for example, the commercial lender required an LLC doc reviewIf we can get the rehab done soon enough, we'll be able to refinance in as little as 3 months because commercial loans have much shorter seasoning requirementsOtherwise, the loan underwriting and process was very similar to a hard money lender. 9.375% rate with 2 points + some closing fees. 

Specific to the short term market, I'm also wondering if a shorter student lease (Aug though May) and AirBnB (Jun-Jul) can coexist.

That is why I recently got my real estate license so I could save on certain costs but also be a service to other investors in the greater Tampa Bay Area.If you are up for it, I second the idea of renting out rooms to military members who are here on a shorter term basis as they reliably pay rent, but you are able to get started at a lower price point that a triplex or quadplex.

Their time horizon is shorter than yours. 

There is a nice yard in the front and a big yard in the back, there are tall fences on both sides of the back, and a shorter 5 foot chain link fence on the back fence that backs up to an drainage ditch/alley(residential area). 

Right now, we are planning to do more of the "house hacking" route and would live in the property and rent out other units/rooms so looking for something close to both of our jobs which are in those areas (as we would prefer a shorter commute).

The terms are shorter and interest is higher.