Current Market ConditionsPhoenix has long been a hotspot for real estate investors, particularly those interested in fix-and-flip projects.

I torn that thing to shreds a long time back: https://www.biggerpockets.com/blog/2015-05-06-2rule-die-horr...The 1% rule used to mostly work as a "pre-filter rule of thumb" as you say.

I've also heard that traveling nurses are good mid term occupants, so try reaching out there. 

Option A would allow me to keep it as a long term rental .

Hard money rates/terms so awful I don't see it as a viable option unless have some insane deal.

Part of those cuts included the short-term rental tax loophole, a strategy real estate investors can use to help mitigate their rental income tax by offsetting earned income with real estate losses, and could be renewed or extended.  

However, when the first buyers failed to come through with cash as specified in their terms, the seller pulled out and offered us the opportunity to purchase the property at the asking price, and we did.

I guess I was in analysis paralysis for a very long time.

Quote from @Steve Englehart: I currently have two long term rentals and am looking into buying into the short term rental arena.  

Maybe another one is tenants may tend to stay longer as long as they are eligible for the program.Not 100% sure, but I don't think they always pay that FMR number.