It lists for an average $250/night which brings in $7500/month. 

I took two business law courses in college. 

Can't imagine being in business with characters like this. 

Is the agent bring you the end-buyer?  

If you were able to increase the value of the property significantly after the rehab, then you could bring the deal to a community bank  to refinance and take the hard money lender out.You keep all the equity and don’t have to file a partnership return for your annual tax return, which can be costly.  

The biggest win seems to be the fact that investors will be able to buy existing STR's and carry on with the business.

Even if the rental has a decent cash flow with additional flood insurance, we're still not sure we want to take on that risk as we are out-of-state investors (planning to move back to KY in the future, but not now) and we don't like that it will potentially bring down the perceived value when we try to sell it in the future.The seller has never lived there and has not provided any information on if it has flooded before or not. 

If you do not have job or another sufficient source of stable, reliable income, then you'll need a coborrower with good income to be joint on the loan with you to bring the income component to the table.

I use Foremost for my mobile home investing business with the properties I buy and hold.

Any good agent can negotiate a fair commission out of the seller side if they are bringing an offer.