Im self employed, roughly make $130k gross anually, 1099 NEC , no debt at all, 740 credit score.  Want to get a loan for $250k in AZ

Your primary insurance policy with $300,000 in liability coverage should be sufficient in 99.999% of all lawsuits.5.

As a medium-term rental, you'd be in better position to be connected with Insurance Company that way.  

What started off as primarily a second home with the possibility of short term leasing quickly flipped to a STR first and a second home when not rented because demand is so strong right now for STR's in this area. 

Currently my short-term management property is managed by the property management company.

A common term for these is payroll loan, but there is other terms as well.

Strategy 1: buy a duplex, live in one unit (for one year as a "primary residence) and rent out another unit as a short-term / mid-term rental on Airbnb.

I would rent 3 or 4 on long-term to get someone in and paying right away.

The short term rental business has been fine, up until this month where I saw the lowest bookings since opening.

@Keith Angell What are your long term goals?