Renter's Insurance is a cheap date for the tenant; it protects their security deposit and assets. 

I'd recommend looking at costs. your build cost is going to be well over other homes because of the fixed costs like slab, Hvac, roof, etc. check the market drivers and weight the benefits of short term versus long term. long term is no furniture and help pays mortgage but at this size it doesn't really cover everything. we didn't find a lot of economies of scale in single family detached. can you build more than one unit?

I've done a lot of value add as well so that helped speed up the process.

My partner and I have a flip that we will be starting in mid march as well!

Very profitable cash flow, much more than Long term rentals and they are well paid, vetted by licensing so very few problems. 

SO why all the legalize right, well because like any good law there is a series of if's, but's and when's. 

You’ll want to make sure your cpa is well versed in short term rentals. 

HELOC rates are high right now as well, which most lenders would not give the full amount anyway (maybe $15,000-$20,000 max in a credit line) which would leave your only option to be FHA anyway and still be tight as your DTI would increase more based on that.

There are many other options as well including some that are included in property management software products. 

If you don’t have a certain amount of funds set aside for these situations as well as your portion of closing costs and some extra reserves for once you close then you’re likely not financially ready to be buying things.