Alternatively, you could potentially have negotiated a lower purchase price… or just walk from the deal if it doesn’t meet your underwriting criteria.

Quote from @Emory Clayton: From what I can tell, and my personal experience, you will have to lower standards so the Section 8 applicants can qualify.I'm not a fan of Section 8 because they tend to be far more problematic than tenants that pay their own bills.

Is there an lower cost alternative to granite / quartz kitchen countertops that is still suitable for an STR?   

This thinking contributed greatly to the market crashing back then and no lender in their right mind would evaluate a deal in this fashion.Lenders will always base value on the lower of the appraised value or the sales price.  

In general you want to be above the mid price point to avoid the lower tier tenants that require more effort, have higher delinquency rates, higher eviction rates, and often higher tenant flip costs.  

well. lower tax's generally helps RE and business as a whole. will have to see if they come up with something specific like the cost seg rules that are redy to sunset.

It seems they lower the price every 30 days or so.

It has a lower turnover than STR but can bring in higher rent than traditional leases.Co-Living Arrangements: Renting rooms individually on a month-to-month basis could generate more income than a single long-term lease while reducing management hassle.Furnished Long-Term Rental: A furnished rental could allow for higher rent and attract tenants who don’t want the STR commitment but still value flexibility.Partner with a Local Boutique STR Manager: Some local companies manage STRs with lower fees than Airbnb's traditional managers and could help keep profits up without 20% fees.Hope that helps you with your decision!

Is there any way to get PennyMac to lower the payoff amount, at least to just the principal amount, enough to cover the partial claim, satisfy the mortgage lender and be able to afford to relocate my family (I only need $7,000 to $10,000 to get a vehicle/uhual and move my family, and that includes the new place)?

I think there may be a market for a lower density campground that offers a higher level of privacy per site with amenities (electric/water hookups, RV dump site, bathhouses, etc...) but...