Number one, if you want this in city limits, zoning will probably flat out refuse it. 

Though at 1525/mth it is projected to cashflow a little less than 100/mth  -- the numbers do not include what I like to call reality numbers (vacancy loss, maintenance, capex reserves).

Quote from @Eric James: This is why I build outside city limits.

I don't have a lot of time or bandwidth to invest in a fixer-upper and I would like something with limited work.  

I have loss GOOD TENANTS because they shared a porch with people they did not care for.  

REPS does not relate to STR's.For short-term rentals (STRs) with an average rental period of seven days or less, you don’t need REP status to offset losses against other income.

In my limited experience with a similar service, they will send you leads and even make offers but you still need to do your due diligence and make sure it's a profitable deal for you.

If you don't have free cash available that limits lots of options, but if you do, that is another story. 

As far as SingleKey actually paying out on claims for tenant non-payment up to 12 months, property damages up to $10k reimbursed, covering 30 days of vacant property losses and helping out with tenant evictions up to $2k (as advertised), curious if anyone on here can attest to SingleKey actually paying out on these claims successfully.

There are limited exemptions such as if you inherited the property where it would be allowed.There are technical means to navigate the 90 day rule but your best bet by far is to talk to the lender and let them know the situation and ask for their direct guidance.