I realize now that I should have supplied numbers initially- for numbers I am looking for $650k and under.

They were never particularly nice, beach cabins on stilts with rattan furniture that usually had water stains from wet suits.  

If you find someone that will let you supply the materials and work for labor only and sign a contract you supplied , you have hired an employee , a laborer , not a contractor .

The money that you end up owing to repay the loan over the 5 year term is now post income tax money unlike how you traditionally are supplying your 401k with pre-tax money.  

I agree with Michael and JohnYou may get a small premium above appraised value for furniture and future bookings but that is about it unfortunately. 

Additionally, there’s always a risk that any pet-related damages could be hidden under furniture or otherwise concealed, potentially leaving us to cover the costs if the security deposit is fully depleted by other expenses (e.g., damages or unpaid rent).

To create rental income that enables financial freedom, you need a location that meets specific criteria.Rents increase faster than inflation: Prices and rents are driven by the imbalance between demand and supply.

I keep hearing that costs of labor and supplies are rising (when aren't they?)

The one cost will be getting the units furnished, but if you live in the area it isn't hard to source a bunch of decent 2nd hand furniture on Craigslist or FB market

This will likely be the smallest aspect of the company but seems like a sensible value add to the other aspects of the company, since we will have a storage unit with furniture/furnishings ready to go-Photographing properties for FSBO listings, or for clients we get for the furnishing/management side of the biz.