It was the tail end of high season and while I knew I could get a higher ADR on my own (I own the unit next door and know the market very well), I would have had to make some changes before listing it myself to do better and in this case, time was money.2.  

I am working on these to see if theres is any way to approve them but I am wondering if my minimum requirements are too high for this area or if I should stick with it.

There isnt any one magic "cheapest" loan - it will be highly specific to the deal.

Also any tips for automating this as much as possible and how to protect the property financially and property management would be appreciated.I ALMOST understand the rental arbitrage strategy if building a company scaling with say 30 + units and looking for high short term cash flow.  

Costs will seem high relative to the loan amount on these smaller loans, $5-6k in lender fees isn't uncommon. 

The risk to my business is much too high just so the agent can make a little more money on the transaction. 

There is a very high demand for S8 properties so filling it with someone is not a problem.  

We go above and beyond when it comes to protection.. starting with insurance coverage, sings in the listing and in the property that there is no guard on duty (as silly as that sounds), putting extra locking device high enough so youngsters can't reach, an alarm/beep system to alert them that door opens for those with small children (or elderly) so they cannot wander out in the backyard with no one noticing and risk drowning.

BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy.

@Jason Baker I attended the University of North Texas in Denton, Tx shortly after high school.