Now the situation has occurred that we need to rent the house out in order to help pay for his long term care expenses. 

The public good is the saving of wear, tear, and expense on our first responders.

Overall I think the average hotel/motel is not doing well right now. 

Use STR-specific insurance to protect both parties and automate operations with platforms like Airbnb, TurnoverBnB, and PriceLabs.Taxable income from the STR must be reported, but you can deduct related expenses like cleaning, utilities, and furnishings.

Any advice on expensive flips?

It seems your lender is a bit more expensive coming in at WSJ prime + 1.65%.

The program was created to give low-income tenants an alternative to living in federal project housing.S8 sets their rental rates to the LOW-END of market averages, if not slightly below.

Even though your market might prove expensive, I would exhaust all options before ruling it out.Truth is, you have a unique competitive advantage in your market.  

It was probably the most expensive Q&A we have ever paid for.

I am no expert by any means but I thought I would drop my opinion here. 1) Should I focus on duplex since they're most likely less expensive in my area in category A or B properties, or aim for more units?